In: Finance
Solo Corp. is evaluating a project with the following cash flows:
Year 0 Cash Flow –$ 29,100
Year 1 Cash Flow $11,300
Year 2 Cash Flow $14,000
Year 3 Cash Flow $15,900
Year 4 Cash Flow $13,000
Year 5 Cash Flow $– 9,500
The company uses an interest rate of 8 percent on all of its projects.
a. Calculate the MIRR of the project using the discounting approach.
b. Calculate the MIRR of the project using the reinvestment approach.
c. Calculate the MIRR of the project using the combination approach.