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Dunder Mifflin Paper Company is considering purchasing a new stamping machine that costs ?$450,000. This new...

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Finance

Dunder Mifflin Paper Company is considering purchasing a newstamping machine that costs ?$450,000. This new machine willproduce cash inflows of $150,000 each year at the end of years 1through? 5, then at the end of year 7 there will be a cashoutflow of $200,000 The company has a weighted averagecost of capital of 14 percent? (use this as the reinvestment?rate). What is the MIRR of the? investment?

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Modified Internal rate of return MIRR is a modified form of IRR which assumes that cash flows are reinvestment at the weighted average cost of capital WACC of 14 The MIRR    See Answer
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Dunder Mifflin Paper Company is considering purchasing a newstamping machine that costs ?$450,000. This new machine willproduce cash inflows of $150,000 each year at the end of years 1through? 5, then at the end of year 7 there will be a cashoutflow of $200,000 The company has a weighted averagecost of capital of 14 percent? (use this as the reinvestment?rate). What is the MIRR of the? investment?

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