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 1 year ago

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