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What is the impact on the MIRR if the reinvestment rate is higher than the IRR of a project? Explain your answer. Are leases more

  1. What is the impact on the MIRR if the reinvestment rate is higher than the IRR of a project? Explain your answer.
  2. Are leases more likely to be in higher or lower income tax brackets than lessors?
  3. What effect would a cancellation clause have on the lessees analysis? On the lessors analysis? A cancelation clause would lower the risk of the lease to the lessee but raise the lessors risk.

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