Question: Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's

Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.

WACC: 8.75%

YearCash flows

0........($1,000)

1.........$450

2.........$450

3.........$450

1. 12.23%

2. 16.90%

3. 11.41%

4. 13.74%

5. 14.16%

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