Question
Computer Consultants Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR? Note
Computer Consultants Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR? Note that a project's MIRR can be less than the cost of capital (and even negative), in which case it will be rejected.
| r = | 7.50% | |||
| Year | 0 | 1 | 2 | 3 |
| Cash flows | $1,000 | $450 | $450 | $450 |
| a. | 14.57% | |
| b. | 14.20% | |
| c. | 13.84% | |
| d. | 13.28% | |
| e. | 15.12% |
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
