East Carolina UniversityFINA 6144 MIRR

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East Carolina UniversityFINA 6144

MIRR. Chamberlain Corp. is evaluating a project with the following cash flows:

Year	Cash Flow
0	-$19,500
1	7,930
2	9,490
3	8,970
4	7,210
5	-3,980

1. The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods.
2. Suppose the company in the previous problem uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. Calculate the MIRR of the project using all three methods with these rates.