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Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 $13,200 1 6,100 2 6,700 3 6,200 4 5,100
Slow Ride Corp. is evaluating a project with the following cash flows: |
Year | Cash Flow |
0 | $13,200 |
1 | 6,100 |
2 | 6,700 |
3 | 6,200 |
4 | 5,100 |
5 | 4,500 |
The company uses a 11 percent discount rate and an 9 percent reinvestment rate on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates. |
Required: | |
(a) | MIRR using the discounting approach.(Do not round your intermediate calculations.) |
(Click to select)19.7%20.69%20.09%18.85%18.72% |
(b) | MIRR using the reinvestment approach.(Do not round your intermediate calculations.) |
(Click to select)14.56%15.58%13.56%14.27%14.98% |
(c) | MIRR using the combination approach.(Do not round your intermediate calculations.) |
(Click to select)14.49%14.01%14.43%13.05%13.74% |
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