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The director of capital budgeting for Ascension Health System, Inc. has estimated the following cash flows for a new service and has a cost of
The director of capital budgeting for Ascension Health System, Inc. has estimated the following cash flows for a new service and has a cost of capital of 11%. What is the projects MIRR?
Year Annual Cash Flows Project Cost of Capital
0 $ (150,000) 11% 1 $ 80,000 2 $ 60,000 3 $ 40,000
Choice: 11% Choice: 16.9% Choice: 13.3% Choice: 9.5%
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