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Question
Westwood Painting Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR? Note that a project's MIRR can be less than the cost of capital (and even negative), in which case it will be rejected.
r = 12.25%
Year 0 1 2 3 4
Cash flows -$850 $300 $320 $340 $360
a. 13.42%
b. 14.91%
c. 16.56%
d. 18.22%
e. 20.04%
Answer
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