The Caffeine Coffee Company uses the MIRR. The firm has a cost of capital of 12 percent.
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The Caffeine Coffee Company uses the MIRR. The firm has a cost of capital of 12 percent. The project being analyzed has a $27,000 initial investment and is expected to produce the following case flows:
Year ................Cash Flow
1 .........................$15,000
2 ...........................12,000
3 .............................9,000
a. What is the MIRR?
b. What is the traditional IRR? Why is there a difference?
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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Related Book For 
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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