Down Under Stores is considering an investment with an initial cost of $92,000. In Year 2, the
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Down Under Stores is considering an investment with an initial cost of $92,000. In Year 2, the project will require an additional investment and finally, the project will be shut down in Year 7. The annual cash flows for Years 1 to 7, respectively, are projected as $20,000, −$41,000, $61,000, $81,000, $91,000, $121,000, and −$61,000. If all negative cash flows are moved to Time 0 using a discount rate of 11 percent, what is the project's modified IRR?
Related Book For
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin
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