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An insurance firm agrees to pay you $5,131 at the end of 29 years if you pay premiums of $158 per year at the
An insurance firm agrees to pay you $5,131 at the end of 29 years if you pay premiums of $158 per year at the end of each year for 29 years. Find the internal rate of return to the nearest whole percentage point. Mooradian Corporation estimates that its weighted average cost of capital is 7.1 percent. The company is considering two mutually exclusive projects whose after-tax cash flows are as follows: Year Project S CF Project LCF 0 1 2 3 4 ($4,727) $3,792 $3,908 $4,170 $523 ($3,234) $2,474 $1,380 $4,553 ($89) What is the modified internal rate of return (MIRR) of the project with the highest NPV? Should this project be accepted?
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