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2. a) Calculate the IRR of the following cash flows: -$550,000 in year 0; $430,000 in...

2. a) Calculate the IRR of the following cash flows: -$550,000 in year 0; $430,000 in year 1; $100,000 in year 2; and $200,000 in year 3. Is the project acceptable if the cost of capital is 10%?

b) Now calculate the MIRR of the same cash flows assuming a reinvestment rate of 12%. Is the project acceptable or not acceptable under this methodology?

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jeff jeffy answered 2 years ago
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