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A project calls for $5.5 million in initial investments. The project will return the following cash...

  1. A project calls for $5.5 million in initial investments. The project will return the following cash flows. What is the modified IRR if the WACC of 7% is applied as the reinvestment rate?
    • Year:   CF
    • 1              400k
    • 2              700k
    • 3              1.1 million
    • 4              1.7 million
    • 5              1.8 million
    • 6              1.5 million
    • 7              900k
    • 8              300k
  • 9.49%
  • 8.61%
  • 9.98%
  • 8.87%

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Expert Solution

Answer: 8.61%

jeff jeffy answered 2 years ago
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