the MIRR of the project t

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 22E
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Duo Corporation is evaluating a project with the following cash flows. The company uses
a discount rate of 9 percent and a reinvestment rate of 6 percent on all of its projects.
Year
0
12345
4
5
Cash Flow
-$ 15,200
6,300
7,500
7,100
5,900
-3,300
Calculate the MIRR of the project using all three methods with these interest rates.
Note: Do not round intermediate calculations and enter your answers as a percent
rounded to 2 decimal places, e.g., 32.16.
Discounting approach
Reinvestment approach
Combination approach
de de
%
%
12.40%
Transcribed Image Text:Duo Corporation is evaluating a project with the following cash flows. The company uses a discount rate of 9 percent and a reinvestment rate of 6 percent on all of its projects. Year 0 12345 4 5 Cash Flow -$ 15,200 6,300 7,500 7,100 5,900 -3,300 Calculate the MIRR of the project using all three methods with these interest rates. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Discounting approach Reinvestment approach Combination approach de de % % 12.40%
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