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The director of capital budgeting for Big Sky Health System, Inc. has estimated the following cash flows for a new service and has a cost
The director of capital budgeting for Big Sky Health System, Inc. has estimated the following cash flows for a new service and has a cost of capital of 8%. What is the projects MIRR?
Year Annual Cash Flows Project Cost of Capital
0 $ (125,000) 8%
1 $ 75,000
2 $ 55,000
3 $ 25,000
Choice: 11.2% Choice: 16.9% Choice: 13.3% Choice: 9.5%
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