Internal rate of return and modified internal rate of return For the project shown in the following table, calculate the internal rate of return (IRR) and modified internal rate of retum (MIRR) If the cost of capital is 13.01%, indicate whether the project is acceptable according to IRR and MIRR. The project's IRR is %. (Round to two decimal places) If the cost of capital is 13.01% According to IRR you should the project. The project's MIRR is % (Round to two decimal places.) According to MIRR you should the project. W reject accept

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter11: Cash Flow Estimation And Risk Analysis
Section: Chapter Questions
Problem 7MC: Calculate the project cash flows for each year. Based on these cash flows and the average project...
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Internal rate of return and modified internal rate of return For the project shown in the following table, calculate the internal rate of return (IRR) and modified internal rate of retum (MIRR). If the cost of capital is
13.01%, indicate whether the project is acceptable according to IRR and MIRR.
The project's IRR is%. (Round to two decimal places.)
If the cost of capital is 13.01%
According to IRR you should
the project
The project's MIRR is
% (Round to two decimal places.)
According to MIRR you
should
the project.
Next
reject
accept
K
Transcribed Image Text:Internal rate of return and modified internal rate of return For the project shown in the following table, calculate the internal rate of return (IRR) and modified internal rate of retum (MIRR). If the cost of capital is 13.01%, indicate whether the project is acceptable according to IRR and MIRR. The project's IRR is%. (Round to two decimal places.) If the cost of capital is 13.01% According to IRR you should the project The project's MIRR is % (Round to two decimal places.) According to MIRR you should the project. Next reject accept K
ate of return F
ble according t
al places.)
ct.
mal places.)
ect.
-
Data table
4
(Click on the icon here in order to copy the contents of the data table below
into a spreadsheet.)
Initial investment (CF)
$110,000
Year (t)
Cash inflows
(CF₂)
1
$45,000
$15,000
$25,000
$30,000
$25,000
2345
Print
Done
X
d internal rate of retum (MIRR). If
Transcribed Image Text:ate of return F ble according t al places.) ct. mal places.) ect. - Data table 4 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial investment (CF) $110,000 Year (t) Cash inflows (CF₂) 1 $45,000 $15,000 $25,000 $30,000 $25,000 2345 Print Done X d internal rate of retum (MIRR). If
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