In: Finance
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. |