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Egg Sauce Company is evaluating a project that has the estimated cash flows given here: Cashflows Initial investments (1,000) Year 1 1,000 Year 2 1,000
Egg Sauce Company is evaluating a project that has the estimated cash flows given here:
Cashflows
Initial investments (1,000)
Year 1 1,000
Year 2 1,000
Assume that the cost of capital is15%.
Required
- Calculate the profitability index
- Calculate the modified internal rate of return (MIRR).
- Does MIRR have any advantages over IRR? Explain
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A Handbook Of Mutual Fund Investing
Authors: Barry G Dolgin
1st Edition
1456489704, 978-1456489700
