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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