Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: Year Cash flows a. 18.63% Ob. 10.52% c. 21.39% O d. 15.95% O e. 11.67% 14.75% 0 -$1,000 1 $450 2 $450 3 $450

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note
that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.
WACC:
Year
Cash flows
a. 18.63%
Ob. 10.52%
c. 21.39%
O d. 15.95%
O e. 11.67%
14.75%
0
-$1,000
1
$450
2
$450
3
$450
Transcribed Image Text:Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: Year Cash flows a. 18.63% Ob. 10.52% c. 21.39% O d. 15.95% O e. 11.67% 14.75% 0 -$1,000 1 $450 2 $450 3 $450
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