Question

In: Finance

The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods.

Solo Corp. is evaluating a project with the following cash flows:

  

Year Cash Flow
0 –$29,800        
1 12,000        
2 14,700        
3 16,600        
4 13,700        
5 –10,200        

  

The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods.

  

a. MIRR using the discounting approach.

   

b. MIRR using the reinvestment approach.

   

c. MIRR using the combination approach.

Solutions

Expert Solution

jeff jeffy answered 3 years ago
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