You are given the following cash flow information for Project A -$150,000.00 PV Outflows -$150,000.00 TV...
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You are given the following cash flow information for Project A -$150,000.00 PV Outflows -$150,000.00 TV Inflows Year 0 1 $80,000.00 2 -$25,000.00 3 $50,000.00 4 $80,000.00 5 -$30,000.00 6 $75,000.00 Totals $75.000.00 Now assume that the project's cost of capital is 16.0 percent, but that its true reinvestment rate is 24.0 percent. Given this information, determine the project's modified internal rate of return (MIRR). You are given the following cash flow information for Project A -$150,000.00 PV Outflows -$150,000.00 TV Inflows Year 0 1 $80,000.00 2 -$25,000.00 3 $50,000.00 4 $80,000.00 5 -$30,000.00 6 $75,000.00 Totals $75.000.00 Now assume that the project's cost of capital is 16.0 percent, but that its true reinvestment rate is 24.0 percent. Given this information, determine the project's modified internal rate of return (MIRR).
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To calculate the Modified Internal Rate of Return MIRR we first need to find the future value of all positive cash flows and the present value of all ... View the full answer
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
Posted Date:
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