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Solo Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 -30,000 1 12,200 2 14,900 3 16,800 4 13,900 5
Solo Corp. is evaluating a project with the following cash flows: |
Year | Cash Flow | ||
0 | -30,000 | ||
1 | 12,200 | ||
2 | 14,900 | ||
3 | 16,800 | ||
4 | 13,900 | ||
5 | -10,400 | ||
The company uses a discount rate of 12 percent and a reinvestment rate of 7 percent on all of its projects. |
a. | Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
b. | Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
c. | Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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