The Last Century Corporation uses the MIRR. The firm has a cost of capital of 7 percent.
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Question:
The Last Century Corporation uses the MIRR. The firm has a cost of capital of 7 percent. The project being analyzed has a $25,000 initial investment and is expected to produce the following cash flows:
Year Cash Flow
1 $12,000
2 10,000
3 7,200
a.What is the modified internal rate of return?(Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.)
MIRR%
b.What is the traditional internal rate of return?(Round the final answer to 2 decimal places.)
Traditional IRR%
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