Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$12,600 1 6,000 2 6,300 3 6,100 4 5,000 5 –4,500 The company uses a...

80.2K

Verified Solution

Question

Finance

Slow Ride Corp. is evaluating a project with the following cashflows:

Year Cash Flow
0 –$12,600
1 6,000
2 6,300
3 6,100
4 5,000
5 –4,500

The company uses a 11 percent discount rate and an 9 percentreinvestment rate on all of its projects. Calculate the MIRR of theproject using all three methods using these interest rates.

Required:
(a) MIRR using the discounting approach.(Do not round yourintermediate calculations.)
(Click to select)19.15%19.27%20.56%20.16%21.17%

(b) MIRR using the reinvestment approach.(Do not round yourintermediate calculations.)
(Click to select)13.8%14.53%15.85%14.82%15.26%

(c) MIRR using the combination approach.(Do not round yourintermediate calculations.)

Answer & Explanation Solved by verified expert

3.8 Ratings (715 Votes)

See Answer

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

Transcribed Image Text

Slow Ride Corp. is evaluating a project with the following cashflows: YearCash Flow0–$12,600 16,000 26,300 36,100 45,000 5–4,500 The company uses a 11 percent discount rate and an 9 percentreinvestment rate on all of its projects. Calculate the MIRR of theproject using all three methods using these interest rates. Required:(a)MIRR using the discounting approach.(Do not round yourintermediate calculations.)(Click to select)19.15%19.27%20.56%20.16%21.17% (b)MIRR using the reinvestment approach.(Do not round yourintermediate calculations.)(Click to select)13.8%14.53%15.85%14.82%15.26% (c)MIRR using the combination approach.(Do not round yourintermediate calculations.)

Required:
(a)	MIRR using the discounting approach.(Do not round yourintermediate calculations.)

	(Click to select)19.15%19.27%20.56%20.16%21.17%

(b)	MIRR using the reinvestment approach.(Do not round yourintermediate calculations.)

	(Click to select)13.8%14.53%15.85%14.82%15.26%