Calculate the MIRR of the project using the discounting approach method. (Do not

Question

Calculate the MIRR of the project using the discounting approach method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Calculate the MIRR of the project using the reinvestment approach method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Calculate the MIRR of the project using the combination approach method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

Normal Approch Discount rate 9% Year 0 1 2 3 4 5 CF -28600 10800 13500 15400 12500 -9000 Dicount 9% -28600 9908.257 11362.68 11891.63 8855.315 -5849.38 PV OF FUTURE CASHFLOWS 36168.49504 MIRR 12.46% Discounting approch In the discounting approach, we find the value of all cash outflows to time 0, while any cash inflows remain at the time at which they occur Discount rate 9% Year 0 1 2 3 4 5 CF -28600 10800 13500 15400 12500 -9000 Dicount 10% -34449.38 10800 13500 15400 12500 0 MIRR 18.31% Reinvestment Approch In the reinvestment approach, we find the future value of all cash except the initial cash flow at the end of the project. Discount rate 9% Year 0 1 2 3 4 5 CF -28600 10800 13500 15400 12500 -9000 Dicount 9% -28600 15245.08 17482.89 18296.74 13625 Time 0&5 cashflow -28600 0 0 0 0 55649.71 MIRR 14.24% combination Approch In the combination approach, we find the value of all cash outflows at time 0, and the value of all cash inflows at the end of the project. Discount rate 9% Year 0 1 2 3 4 5 CF -28600 10800 13500 15400 12500 -9000 Dicount 9% -28600 15245.08 17482.89 18296.74 13625 Time 0&5 cashflow -34449.38248 0 0 0 0 64649.71 MIRR 13.42%

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