Question: Problem 9-20 MIRR [LO6] Solo Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 $ 29,800 1 12,000 2 14,700

Problem 9-20 MIRR [LO6]

Solo Corp. is evaluating a project with the following cash flows:

Year Cash Flow
0 $ 29,800
1 12,000
2 14,700
3 16,600
4 13,700
5 10,200

The company uses a discount rate of 13 percent and a reinvestment rate of 6 percent on all of its projects.

a.

Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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