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Martin Manufacturers is considering a five-year investment which costs $200,000. The investment will produce cash flows of $40,000 each year for the first two years
Martin Manufacturers is considering a five-year investment which costs $200,000. The investment will produce cash flows of $40,000 each year for the first two years (t = 1 and t = 2), $50,000 a year for each of the remaining three years (t = 3, t = 4, and t = 5). The company has a cost of capital of 10%. What is the MIRR of the investment? a. 10.10% b. 7.33% c. 8.05% d. 9.25% e. 6.75%
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