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Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 $12,400 1 5,900 2 6,200 3 5,900 4 4,800
Slow Ride Corp. is evaluating a project with the following cash flows: |
Year | Cash Flow |
0 | $12,400 |
1 | 5,900 |
2 | 6,200 |
3 | 5,900 |
4 | 4,800 |
5 | 4,400 |
The company uses a 11 percent discount rate and an 8 percent reinvestment rate on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates. |
#1 MIRR using the discounting approach :
#2 MIRR using the reinvestment approach:
#3 MIRR using the combination approach: |
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