Question
A project has a series of non-normal cash flows that result in a terminal value (TV) of $120,000 in 5 years. If the project's initial
A project has a series of non-normal cash flows that result in a terminal value (TV) of $120,000 in 5 years. If the project's initial costs are $33,000, what is your recommendation to management regarding this project (accept/reject)?
a.accept as the terminal value is greater than the present value of the costs
b.accept as the MIRR is 29.50
c.reject as the MIRR is greater than zero
d.accept as the MIRR is 38.95%
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Fundamentals Of Financial Management
Authors: Richard Bulliet, Eugene F Brigham, Brigham/ Houston
11th Edition
1111795207, 9781111795207
