Outlay Rs 1,000; inflows Rs 1,100 and Rs 230 in years 1 and 2; reinvest at 10%. MIRR?
A10%
B20%
C15%
D18%
Answer & Solution
Correct answer: B. 20%
Terminal value is 1,100 times 1.1 plus 230, which is 1,440; the square root of 1.44 minus 1 is 20%.
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