Question: Solo Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 $13,200 Year 1 Cash Flow $6,100 Year 2 Cash Flow
Solo Corp. is evaluating a project with the following cash flows:
Year Cash Flow 0 $13,200
Year 1 Cash Flow $6,100
Year 2 Cash Flow $6,700
Year 3 Cash Flow $6,200
Year 4 Cash Flow $5,100
Year 5 Cash Flow $4,500
The company uses a disount rate of 11 percent and a reinvestment rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates.
a. MIRR using the discounting approach.
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