Use the modified internal rate of return approach (MIRR) with an investment rate of 20% per...

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Use the modified internal rate of return approach (MIRR) with an investment rate of 20% per year and a borrowing rate of 12% to find the external rate of return for the following cash flows. Year Net Cash Flow ($) 0 +16,000 Year Net Cash Flow ($) -12,000 0 +16,000 b. Use the Return on invested capital (ROIC) approach with an investment rate of 20% per year to find the external rate of return for the following cash flows. 2 -25,000 1 -12,000 3 +60,000 2 -25,000 3 +60,000 Use the modified internal rate of return approach (MIRR) with an investment rate of 20% per year and a borrowing rate of 12% to find the external rate of return for the following cash flows. Year Net Cash Flow ($) 0 +16,000 Year Net Cash Flow ($) -12,000 0 +16,000 b. Use the Return on invested capital (ROIC) approach with an investment rate of 20% per year to find the external rate of return for the following cash flows. 2 -25,000 1 -12,000 3 +60,000 2 -25,000 3 +60,000

Answer rating: 100% (QA)

a ANSWER To find the external rate of return using MIRR we need to first find the future value of all cash inflows and outflows at the borrowing rate ... View the full answer