Question

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.)

Answer 1