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3. a.Find the IRR of a project that returns $17,000 three-(Answered)

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Question

3. a.Find the IRR of a project that returns $17,000 three yearsfrom

now if it costs $12,000.

b. Find the IRR and MIRR of a project if it has estimated cashflows

of $5,500 annually for seven years if its year 0 investmentis

$25,000.


years

 

0

 

1

 

2

 

3

 

130

 

%

 


 

Cash

 

flow

 

-12000

 

17000

 

17000

 

17000

 


 

Using excel you get the 130%

 

b) MIRR

 

0

 


 

-25000

 


 

1

 


 

5500

 


 

2

 


 

5500

 


 

3

 


 

5500

 


 

4

 


 

5500

 


 

5

 


 

5500

 


 

6

 


 

5500

 


 

7

 


 

5500

 


 

IRR

 


 

12%

 


 

MIR

 

R

 


 

12.063

 

%...

 

Paper#9210651 | Written in 27-Jul-2016

Price : $19
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