Question:
Chamberlain Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 10 percent and a reinvestment rate of 7 percent on all of its projects.
|
Year
|
Cash Flow
|
|
0
|
-$15,400
|
|
1
|
6500
|
|
2
|
7700
|
|
3
|
7300
|
|
4
|
6100
|
|
5
|
-3500
|
Calculate the MIRR of the project using the discounting approach method, the reinvestment approach method, and the combination approach.