Question: Computer Consultants Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR? Note
Computer Consultants Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR? Note that a project's MIRR can be less than the cost of capital (and even negative), in which case it will be rejected.
| r = | 8.00% | |||
| Year | 0 | 1 | 2 | 3 |
| Cash flows | $1,000 | $450 | $450 | $450 |
| a. | 12.78% | |
| b. | 13.47% | |
| c. | 11.50% | |
| d. | 14.20% | |
| e. | 10.35% |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
