Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow -$ 16,200 7,300 2 8,500 3 8,100 6,900 -4,300 4 5 The company uses an interest rate of 12 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 Reinvestment approach Combination approach % % %

Essentials Of Investments
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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
-$ 16,200
1
7,300
N345
8,500
8,100
6,900
-4,300
The company uses an interest rate of 12 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
Reinvestment approach
%
%
Combination approach
%
Transcribed Image Text:Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 -$ 16,200 1 7,300 N345 8,500 8,100 6,900 -4,300 The company uses an interest rate of 12 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 Reinvestment approach % % Combination approach %
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