In: Finance
Slow Ride Corp. is evaluating a project with the following cash flows: |
Year | Cash Flow |
0 | –$12,800 |
1 | 6,200 |
2 | 6,800 |
3 | 6,300 |
4 | 5,200 |
5 | –4,400 |
The company uses a 11 percent discount rate and an 10 percent reinvestment rate on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates. |
Required: | |
(a) | MIRR using the discounting approach.(Do not round your intermediate calculations.) |
(Click to select) 22.64% 23.31% 21.77% 22.2% 21.09% |
(b) | MIRR using the reinvestment approach.(Do not round your intermediate calculations.) |
(Click to select) 16.97% 16.82% 16.16% 16.48% 15.35% |
(c) | MIRR using the combination approach.(Do not round your intermediate calculations.) |
(Click to select) 15.35% 15.73% 16.12% 15.66% 14.58% |