Question: Compare the projects using the Modified IRR technique. Assume that the reinvestment rate for both projects is 5%. Define the technique. Discuss the difference between
Compare the projects using the Modified IRR technique.
Assume that the reinvestment rate for both projects is 5%. Define the technique. Discuss the difference between this method [the Modified IRR technique], and the Internal Rate of Return, Net Present Value, Discount Payback Method & Payback Method Analyze the numbers in the problem using an excel spreadsheet.
You must use Excel formulas which are on the ribbon in Excel marked Fx to make your calculations whenever possible. Do not write your own formulas unless absolutely necessary. All information must be in Excel (Word documents will not be read and you will not get credit). Remember to carry out your answers at least two decimal places
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Reinvestment rate 5 Year Project A Project B 2014 3000000 3000000 2015 0 975000 2016 600000 975000 2017 900000 975000 2018 2700000 975000 1 MIRR 946 6... View full answer
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