Question

Solo Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$12,400...

Solo Corp. is evaluating a project with the following cash flows: Year Cash Flow

0 –$12,400

year cash flow
0 - $12,400
1 $5,900
2 $6,200
3 $5,900
4 $4,800
5 -$4,400

The company uses a disount rate of 11 percent and a reinvestment rate of 8 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.

b. MIRR using the reinvestment approach.

c. MIRR using the combination approach.

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