Problem:
Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 -$ 28,900 1 11,100 2 13,800 3 15,700 4 12,800 5 - 9,300 The company uses an interest rate of 9 percent on all of its projects.
Required:
Question 1: Calculate the MIRR of the project using the discounting approach method.
Question 2: Calculate the MIRR of the project using the reinvestment approach method.
Question 3: Calculate the MIRR of the project using the combination approach method.
Note: Be sure to show how you arrived at your answer.