Duo Corporation is evaluating a project with the following cash flows: Year 1 022345 Cash Flow -$ 16,300 7,400 8,600 8,200 7,000 -4,400 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. Answer is complete but not entirely correct. Discounting approach Reinvestment approach Combination approach 11.20% 16.09 % 10.11%

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
Cash Flow
0
-$ 16,300
1
7,400
2
8,600
3
8,200
4
5
7,000
-4,400
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.
Answer is complete but not entirely correct.
Discounting approach
11.20%
Reinvestment approach
Combination approach
16.09 %
10.11%
Transcribed Image Text:7 Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 -$ 16,300 1 7,400 2 8,600 3 8,200 4 5 7,000 -4,400 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. Answer is complete but not entirely correct. Discounting approach 11.20% Reinvestment approach Combination approach 16.09 % 10.11%
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