Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of
this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3 and
3.5 years, respectively.
Time:
1
2
3
5
Cash flow:
-$285,000
$47,800
$66,000
$105,000
$104, 000
$63, 200
Use the MIRR decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2
decimal places.)
MIRR
%
Should it be accepted or rejected?
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