Home & More is considering a project with cash flows of −$368,000, $133,500, −$35,600, $244,700, and $258,000 for Years 0 to

Question

3 years ago

14

Home & More is considering a project with cash flows of −$368,000, $133,500, −$35,600, $244,700, and $258,000 for Years 0 to

4, respectively. Should this project be accepted based on the combination approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 14.6 percent? Why or why not?

Business

1 answer:

AVprozaik [17] · Answer 1 · 2022-03-07T06:18:54+03:00

AVprozaik [17]3 years ago

7 0

Answer:

Modified Internal Rate of Return (MIRR) is higher than the discount rate. Therefore, this offer should be accepted.

Explanation:

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