Duo Corporation is evaluating a project with the following cash flows: Year 0 Cash Flow -$ 15,300 1 6,400 2 7,600 3 7,200 4 5 6,000 -3,400 The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Discounting approach 5,050.75 % Reinvestment approach 33,819.20 % Combination approach 3,482.04 %

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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Duo Corporation is evaluating a project with the following cash flows:
Year
0
Cash Flow
-$ 15,300
1
2
3
6,400
7,600
4
5
7,200
6,000
-3,400
The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods.
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
Discounting approach
5,050.75 %
Reinvestment approach
33,819.20 %
Combination approach
3,482.04 %
Transcribed Image Text:Duo Corporation is evaluating a project with the following cash flows: Year 0 Cash Flow -$ 15,300 1 2 3 6,400 7,600 4 5 7,200 6,000 -3,400 The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Discounting approach 5,050.75 % Reinvestment approach 33,819.20 % Combination approach 3,482.04 %
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