Question
Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 $13,000 1 6,000 2 6,400 3 6,100 4 5,000
| Slow Ride Corp. is evaluating a project with the following cash flows: |
| Year | Cash Flow |
| 0 | $13,000 |
| 1 | 6,000 |
| 2 | 6,400 |
| 3 | 6,100 |
| 4 | 5,000 |
| 5 | 4,700 |
| The company uses a 11 percent discount rate and an 10 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.) |
| (b) | MIRR using the reinvestment approach.(Do not round your intermediate calculations.) |
| (c) | MIRR using the combination approach.(Do not round your intermediate calculations.) |
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
11th Edition
1264413041, 9781264413041
