You are given the following cash flow information for Project A PV Outflows TV Inflows $150,000.00 Year 0 1 23456 Project A $150,000.00 $80,000.00 $25,000.00 $50,000.00 $80.000.00 $30,000.00 $75,000.00 Totals Now assume that the project's cost of capital is 16.0 percent, but that its true reinvestment rate is 23.0 percent. Given this information, determine the project's modified internal rate of return (MIRR). O 18.81% O 17.51% O 19.46% O 20.11% $75,000.00 O 18.16%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 14P
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You are given the following cash flow information for Project A
Year Project A
PV Outflows TV Inflows
$150,000.00
0
1
23456
$150,000.00
$80,000.00
-$25,000.00
$50,000.00
$80,000.00
-$30,000.00
$75,000.00
Totals
Now assume that the project's cost of capital is 16.0 percent, but
that its true reinvestment rate is 23.0 percent. Given this
information, determine the project's modified internal rate of return
(MIRR).
O 18.81%
O 17.51%
O 19.46%
O 20.11%
$75,000.00
O 18.16%
Transcribed Image Text:You are given the following cash flow information for Project A Year Project A PV Outflows TV Inflows $150,000.00 0 1 23456 $150,000.00 $80,000.00 -$25,000.00 $50,000.00 $80,000.00 -$30,000.00 $75,000.00 Totals Now assume that the project's cost of capital is 16.0 percent, but that its true reinvestment rate is 23.0 percent. Given this information, determine the project's modified internal rate of return (MIRR). O 18.81% O 17.51% O 19.46% O 20.11% $75,000.00 O 18.16%
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