Compute the Regular Payback Period (RPP) and MIRR for these cash flows, assuming WACC =...
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Finance
Compute the Regular Payback Period (RPP) and MIRR for these cash flows, assuming WACC = 8%. What decision should you make if your Board of Directors mandates a payback period of no more than 48 months?
Year: 0 1 2 3 4
Cash Flow: -$10,000 $2050 $2250 $3850 $4750
A. 3.0; 7.4%; Accept on the basis of MIRR
B. 3.6; 9%; Reject on the basis of RPP
C. 3.4; 7.4%; Accept on the basis of RPP
D. 3.4; 9%; Accept on the basis of MIRR
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