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Mittuch Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 12 percent and a reinvestment rate of
Mittuch Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 12 percent and a reinvestment rate of 9 percent on all of its projects.
Year | Cash Flow | |||
0 | $ | 15,100 | ||
1 | 6,200 | |||
2 | 7,400 | |||
3 | 7,000 | |||
4 | 5,800 | |||
5 | 3,200 | |||
|
Calculate the MIRR of the project using all three methods with these interest rates.
MIRR | |
Discounting approach | % |
Reinvestment approach | % |
Combination approach | % |
|
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