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 13 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years, respectively. Time: 0 1 2 3 4 5 Cash flow: −$240,000 $64,800 $83,000 $139,000 $121,000 $80,200 Use the MIRR decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.) MIRR: ?%
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 13 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years, respectively. Time: 0 1 2 3 4 5 Cash flow: −$240,000 $64,800 $83,000 $139,000 $121,000 $80,200 Use the MIRR decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.) MIRR: ?%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suppose your firm is considering investing in a project with the
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow: | −$240,000 | $64,800 | $83,000 | $139,000 | $121,000 | $80,200 |
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?
multiple choice
-
accepted
-
rejected
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