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pinkkurage pinkkurage
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A month ago
Project X has a cost of capital of 8% and the following cash flows: investment of $10,000 in year 0, cash inflows of $2,000, $ 3,000, and $10,000 in years 1, 2, and 3, respectively.
a) What is the IRR? What is the assumption of IRR on reinvesting cash?
b) Suppose the cash inflows are deposited in an account without interest. What is the MIRR?
c) Suppose the cash inflows are deposited in an account with an 8% annual interest rate. What is the MIRR?
d) Suppose the cash inflows are deposited in an account with a 17.69% annual interest rate. What is the MIRR?
e) When will IRR equal MIRR?
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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kniemeier2kniemeier2
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