Question: QUESTION 7 Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that

QUESTION 7

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:

11.75%

Year

0

1

2

3

Cash flows

-$1,000

$450

$450

$450

a.

12.03%

b.

12.32%

c.

16.63%

d.

13.96%

e.

14.85%

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