Calculate the MIRR of the project using all three methods with these interest rates.

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
Section: Chapter Questions
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Duo Corporation is evaluating a project with the following cash flows.
The company uses a discount rate of 8 percent and a reinvestment
rate of 5 percent on all of its projects.
Year
0
2
4
5
Cash Flow
-$ 16,800
7,900
9,100
8,700
7,500
-4,900
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
%
%
%
Transcribed Image Text:Duo Corporation is evaluating a project with the following cash flows. The company uses a discount rate of 8 percent and a reinvestment rate of 5 percent on all of its projects. Year 0 2 4 5 Cash Flow -$ 16,800 7,900 9,100 8,700 7,500 -4,900 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 % % %
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