Question
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively.
| Time: | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| Cash flow: | $15,000 | $2,800 | $4,000 | $3,200 | $3,200 | $3,000 | $2,800 |
Use the MIRR decision rule to evaluate this project.
MIRR?
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The Practical Guide To Wall Street Equities And Derivatives
Authors: Matthew Tagliani
1st Edition
0470383720, 978-0470383728
