Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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PLEASE ANSWER ACCURETLY
Duo Corporation is evaluating a project with the following cash flows: |
Year | Cash Flow |
---|---|
0 | −$ 29,800 |
1 | 12,000 |
2 | 14,700 |
3 | 16,600 |
4 | 13,700 |
5 | −10,200 |
The company uses a discount rate of 13 percent and a reinvestment rate of 6 percent on all of its projects. |
a. |
Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
b. | Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
c. | Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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