6. Refer to the cash flows in #6. Determine the modified internal rate of return...

60.1K

Verified Solution

Question

Accounting

image
6. Refer to the cash flows in #6. Determine the modified internal rate of return (MIRR) if the cost of capital is 10%. a. 15.34%. b. $19,21%. c. 28.61%. d. $34.22%. Terminal Value = 2,000 + 1,500*(1.1) + 500*(1.1)/2 = 4,255 2,000 = 4,255/(1+MIRR) 3 => MIRR = 28.61%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students