Question
Internal rate of return and modified internal rate of return For the project shown in the following table, nitial investment ( CF 0) $80,000 Year
Internal rate of return and modified internal rate of return For the project shown in the following table,
| nitial investment (CF0) | $80,000 | |
| Year (t) | Cash inflows (CFt) | |
| 1 | $10,000 | |
| 2 | $20,000 | |
| 3 | $35,000 | |
| 4 | $40,000 | |
| 5 | $15,000 | |
,
calculate the internal rate of return (IRR) and modified internal rate of return
(MIRR).
If the cost of capital is
12.99%,
indicate
whether the project is acceptable according to IRR and MIRR.
The project's MIRR is
nothing %
According to MIRR you should reject/accept the project?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Personal Finance
Authors: E Thomas Garman, Raymond Forgue
11th Edition
1111531013, 9781111531010
