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Cool Water Drinks is considering a proposed project with the following cash flow

ID: 2706633 • Letter: C

Question

Cool Water Drinks is considering a proposed project      with the following cash flows. Should this project be accepted based on      the combined approach to the modified internal rate of return if both the      discount rate and the reinvestment rate are 12.6 percent? Why or why not?

Cool Water Drinks is considering a proposed project with the following cash flows. Should this project be accepted based on the combined approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 12.6 percent? Why or why not?

Explanation / Answer

Yes, the MIRR is 8.81 percent.

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