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In capital budgeting, theIRR implicitly assumes reinvestments of interim cash flows at the IRR itself.First, discuss why this assumption is problematic.Then, explain how MIRR address

In capital budgeting, theIRR implicitly assumes reinvestments of interim cash flows at the IRR itself.First, discuss why this assumption is problematic.Then, explain how MIRR address this issue by presentingyour own unique example of cash flowswith proper calculations of aterminal cash flow.The example project should be a 4 year project.For example, cash flows might look like, -500, $$$, $$$, $$$, $$$, at T=0 to 4, respectively.

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