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In: Finance

Cummings Products Company is considering the following investment. The project’s expected cash flows are as follows:...

Cummings Products Company is considering the following investment. The project’s expected cash flows are as follows:

Year

Cash flow

0

-$3,000

1

-3,870

2

-1,930

3

6,000

4

6,000

5

-11,000

6

8,500

7

2,800

8

-5,000

1. Assume a discount rate of 15 percent. What is the PV of all cash outflows?

2. Assume a discount rate of 15 percent. What is the FV of all cash inflows?

3. Assume a discount rate of 15 percent. What is the project's MIRR?

4. should this project be accepted based solely on the MIRR rule?

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 2 years ago
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