The company you work for is considering a project that has the following cash flows:

Yr. 0: -720,000

Yr. 1: 328,000

Yr. 2: 382,000

Yr. 3: -127,000

Yr. 4: 295,000

Yr. 5: 320,000

1. Please compute the Modified Internal Rate of Return, using the combination approach, and assuming the appropriatediscount/compound/reinvestmentrate is 12%.
2. What issues does Modified Internal Rate of Return address, as compare to Internal Rate of Return, if any?

Answer rating: 100% (QA)

To calculate the Modified Internal Rate of Return MIRR using the combination approach we first need ... View the full answer