Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You are given the following cash flow information for Project A
Year Project A
PV Outflows TV Inflows
$150,000.00
0
1
23456
$150,000.00
$80,000.00
-$25,000.00
$50,000.00
$80,000.00
-$30,000.00
$75,000.00
Totals
Now assume that the project's cost of capital is 16.0 percent, but
that its true reinvestment rate is 23.0 percent. Given this
information, determine the project's modified internal rate of return
(MIRR).
O 18.81%
O 17.51%
O 19.46%
O 20.11%
$75,000.00
O 18.16%
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Transcribed Image Text:You are given the following cash flow information for Project A Year Project A PV Outflows TV Inflows $150,000.00 0 1 23456 $150,000.00 $80,000.00 -$25,000.00 $50,000.00 $80,000.00 -$30,000.00 $75,000.00 Totals Now assume that the project's cost of capital is 16.0 percent, but that its true reinvestment rate is 23.0 percent. Given this information, determine the project's modified internal rate of return (MIRR). O 18.81% O 17.51% O 19.46% O 20.11% $75,000.00 O 18.16%
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