In: Finance
| Solo Corp. is evaluating a project with the following cash flows: |
| Year | Cash Flow | ||
| 0 | –$ | 28,700 | |
| 1 | 10,900 | ||
| 2 | 13,600 | ||
| 3 | 15,500 | ||
| 4 | 12,600 | ||
| 5 | – | 9,100 | |
| 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. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| b. | Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| c. | Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |