Mittuch Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 10 percent and a reinvestment rate of 7 percent on all of its projects. Year 2 124450 3 Cash Flow -$15,900 7,000 8,200 7,800 6,600 - 4,000 Calculate the MIRR of the project using all three methods with these interest rates. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) MIRR Discounting approach 24.72% Reinvestment approach 15.65 % Combination approach 14.84 %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Mittuch Corp. is evaluating a project with the following cash flows. The company uses a
discount rate of 10 percent and a reinvestment rate of 7 percent on all of its projects.
Year
012345
Cash Flow
-$15,900
7,000
8,200
7,800
6,600
- 4,000
Calculate the MIRR of the project using all three methods with these interest rates. (Do
not round intermediate calculations and enter your answers as a percent rounded to
2 decimal places, e.g., 32.16.)
MIRR
Discounting approach
24.72%
Reinvestment approach
15.65%
Combination approach
14.84 %
Transcribed Image Text:Mittuch Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 10 percent and a reinvestment rate of 7 percent on all of its projects. Year 012345 Cash Flow -$15,900 7,000 8,200 7,800 6,600 - 4,000 Calculate the MIRR of the project using all three methods with these interest rates. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) MIRR Discounting approach 24.72% Reinvestment approach 15.65% Combination approach 14.84 %
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