Question
Reed Enterprises is considering a project that has the following cash flow data. The cost of capital for the project is 10%. What is the
Reed Enterprises is considering a project that has the following cash flow data. The cost of capital for the project is 10%. What is the project's MIRR if the firm would be able to reinvest the cash flows at a rate equal to the project's cost of capital?
| WACC: | 10.00% | |||
| Year | 0 | 1 | 2 | 3 |
| Cash flows | -$1,000 | $400 | $500 | $400 |
Select one:
a. 14.11%b. 11.85%c. 13.23%d. 12.03%e. 12.77%
Please show work!
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
