viv.3 Doak Corp. is evaluating a project with the following cash flows. The company uses adiscount rate of 12 percent and a reinvestment rate of 9 percent on all of its projects.Year012345Cash Flow-$16,6007,7008,9008,5007,300- 4,700Calculate the MIRR of the project using all three methods with these interest rates. (Donot round intermediate calculations and enter your answers as a percent rounded to2 decimal places, e.g., 32.16.)Discounting approachReinvestment approachCombination approach\%%%

MIRR:MIRR (Modified Internal Rate of Return) is a financial metric used to evaluate the performance…

Doak Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 12 percent and a reinvestment rate of 9 percent on all of its projects. Year 0 12345 Cash Flow -$16,600 7,700 8,900 8,500 7,300 - 4,700

Doak Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 12 percent and a reinvestment rate of 9 percent on all of its projects. Year 0 12345 Cash Flow -$16,600 7,700 8,900 8,500 7,300 - 4,700

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

Problem 1PS

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viv.3

Doak Corp. is evaluating a project with the following cash flows. The company uses a
discount rate of 12 percent and a reinvestment rate of 9 percent on all of its projects.
Year
012345
Cash Flow
-$16,600
7,700
8,900
8,500
7,300
- 4,700
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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