(a) Solo Corp. is evaluating a project with the following cash flows:

Year Cash Flow

0 $ 47,000

1 $ 16,900

2 $20,300

3 $25,800

4 $19,600

5 $9,500

The company uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of

its projects.

(i) Calculate the MIRR of the project using the reinvestment approach.

(3 marks)

(ii) Calculate the MIRR of the project using the combination approach.

(3 marks)