Chapter 8 # 22 22. MIRR. Chamberlain Corp. is evaluating a project with the foll
ID: 2625751 • Letter: C
Question
Chapter 8 # 22
22. MIRR. Chamberlain Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 2 $19,500 1 7,930 2 9,490 3 8,970 4 7,210 5 2 3,980 The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods.
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Explanation / Answer
Formula Case -> A Cash flow PV of Cash flow Year Cash flow A A/(1+r)^0 0 -19,500 B B/(1+r)^1 1 7,930 C C/(1+r)^2 2 9,490 D D/(1+r)^3 3 8,970 E E/(1+r)^4 4 7,210 F F/(1+r)^5 5 3,980 MIRR r if npv = sum of above = 0 29.6971%
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