Doak Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. |
Year | Cash Flow | |||
0 | –$ | 32,600 | ||
1 | 11,520 | |||
2 | 14,670 | |||
3 | 11,270 | |||
4 | 10,940 | |||
5 | – | 4,230 | ||
Calculate the MIRR of the project using all three methods with these interest rates. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
Using excel to calculate MIRR for all three approaches
A | B | |
1 | Year | Cash Flow |
2 | 0 | -32600 |
3 | 1 | 11520 |
4 | 2 | 14670 |
5 | 3 | 11270 |
6 | 4 | 10940 |
7 | 5 | -4230 |
Discount Rate | 11% | |
Reinvestment rate | 8% | |
MIRR using discounting approach | 12.61% | |
Excel formula | MIRR(B2:B7,11%,11%) | |
MIRR using reinvesting approach | 13.83% | |
Excel formula | MIRR(B2:B7,8%,8%) | |
MIRR using combination approach | 10.98% | |
Excel formula | MIRR(B2:B7,11%,8%) |
Doak Corp. is evaluating a project with the following cash flows. The company uses a discount...
Doak Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. Year Nmto Cash Flow -$32,600 11,520 14,670 11,270 10,940 - 4,230 Calculate the MIRR of the project using all three methods with these interest rates. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Discounting approach Reinvestment approach...
Doak Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. Year Cash Flow 0 –$ 32,600 1 11,520 2 14,670 3 11,270 4 10,940 5 – 4,230 Calculate the MIRR of the project using all three methods with these interest rates. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places,...
Doak Corp. is evaluating a project with the following cash flows: Year Cash Flow -$32,600 11,520 14,670 11,270 10,940 - 4,230 The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Discounting approach Reinvestment approach Combination approach
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Doak Corp. is evaluating a project with the following cash flows: Year Cash Flow -$15,100 6,200 7,400 7,000 5,800 -3,200 1 2 3 5 The company uses an interest rate of 11 percent on all of its projects. Calculate the MIRR of the project using all three methods. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Discounting approach Reinvestment approach Combination approach %
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Doak Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 16,100 1 7,200 2 8,400 3 8,000 4 6,800 5 – 4,200 The company uses an interest rate of 11 percent on all of its projects. Calculate the MIRR of the project using all three methods.