Question

M Company is evaluating a project with the following cash flows. The company uses a discount...

  1. M Company is evaluating a project with the following cash flows. The company uses a discount rate of 8% and a reinvestment rate of 5% on all of its projects.

            Year                                        Cash Flow

  1. -16,800
  2. 7,900
  3. 9,100
  4. 8,700
  5. 7,500
  6. -4,900

Calculate the MIRR of the project using all three methods with the above interest rates.

1.Discounting Approach

2. Reinvestment approach

3. Combination Approach

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