Doak Corp. 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 1 Cash Flow -$16,700 2345 7,800 9,000 8,600 7,400 - 4,800 Calculate the MIRR of the project using all three methods with these interest rates. (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\ % % %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Doak Corp. 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
1
Cash Flow
-$16,700
2345
7,800
9,000
8,600
7,400
- 4,800
Calculate the MIRR of the project using all three methods with these interest rates. (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\
%
%
%
Transcribed Image Text:Doak Corp. 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 1 Cash Flow -$16,700 2345 7,800 9,000 8,600 7,400 - 4,800 Calculate the MIRR of the project using all three methods with these interest rates. (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\ % % %
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