Paula is planning to buy a Coffee Shop for $115,000 today. In return, Paula is expecting...
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Paula is planning to buy a Coffee Shop for $115,000 today. In return, Paula is expecting the following cashflows: Year1: $7,188; Year2: $28,000; Year3: $40,250; Year4: $50,315; Year5: $40,028 Paula can borrow from a bank at a rate of 9.40% to buy the Coffee Shop How much is the MIRR (modified internal rate of return) of this project? Enter your answer in the following format: 0.1234; Paula is planning to buy a Coffee Shop for $115,000 today. In return, Paula is expecting the following cashflows: Year1: $7,188; Year2: $28,000; Year3: $40,250; Year4: $50,315; Year5: $40,028 Paula can borrow from a bank at a rate of 9.40% to buy the Coffee Shop How much is the MIRR (modified internal rate of return) of this project? Enter your answer in the following format: 0.1234;
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To calculate the MIRR of the project we need to calculate the terminal value of the cash flows at th... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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