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Please work out the Problem! Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's
Please work out the Problem!
Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.
| WACC: | 14.75% | |||
| Year | 0 | 1 | 2 | 3 |
| Cash flows | -$1,000 | $550 | $550 | $550 |
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