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Find MIRR for the project with a cost of -$20,000 and subsequent cash flows of 10,000;...

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Finance

Find MIRR for the project with a cost of -$20,000 and subsequentcash flows of 10,000; $40,000; - $5,000; -$30,000. Use WACC of 6%.Will you proceed with this project? Why or why not?

Answer & Explanation Solved by verified expert
4.0 Ratings (760 Votes)
Combination approach All negative cash flows are discounted back to the present and all positive cash flows are compounded out to the end of the projects life Thus year 4 modified cash flow119101644944 5685416 Thus year 0    See Answer
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Find MIRR for the project with a cost of -$20,000 and subsequentcash flows of 10,000; $40,000; - $5,000; -$30,000. Use WACC of 6%.Will you proceed with this project? Why or why not?

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