In: Finance
Slow Ride Corp. is evaluating a project with the following cash flows: |
Year | Cash Flow |
0 | –$12,600 |
1 | 6,000 |
2 | 6,300 |
3 | 6,100 |
4 | 5,000 |
5 | –4,500 |
The company uses a 11 percent discount rate and an 9 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)19.15%19.27%20.56%20.16%21.17% |
(b) | MIRR using the reinvestment approach.(Do not round your intermediate calculations.) |
(Click to select)13.8%14.53%15.85%14.82%15.26% |
(c) | MIRR using the combination approach.(Do not round your intermediate calculations.) |