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: | 9.75% | |||
Year | 0 | 1 | 2 | 3 |
Cash flows | -$1,000 | $450 | $450 | $450 |
| a. | 14.11% | |
| b. | 15.81% | |
| c. | 17.22% | |
| d. | 15.52% | |
| e. | 10.72% |
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