Question
A company uses the MIRR. The firm has a cost of capital of 10%. Project is analyzed as $39,000 initial investment and is expected to
A company uses the MIRR. The firm has a cost of capital of 10%. Project is analyzed as $39,000 initial investment and is expected to produce the following case flows:
| Year | Cash Flow |
| 1 | $16,000 |
| 2 | $12,300 |
| 3 | $15,100 |
a. What is the MIRR?
b. What is the traditional IRR? Why is there a difference?
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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
