alleryStart learning →Three yearly inflows of 1,000 are reinvested at 10%. Terminal value at year 3?
A3,641
B3,100
C3,310
D3,000
Answer & Solution
Correct answer: C. 3,310
1,000 x 1.21 + 1,000 x 1.1 + 1,000 = 1,210 + 1,100 + 1,000 = 3,310.
Keep practising Modified Internal Rate of Return
Browse all Modified Internal Rate of Return questions for CA Inter, or explore more Financial Management topics.
Related questions
Terminal value 7,600 and outflow PV 4,636.36 over 3 years give MIRR near?Outlay 2,000 now; inflows 1,100 (yr 1), 1,210 (yr 2); reinvestment 10%. MIRR?Outflows 1,000 now and 1,100 at year 1 (finance 10%); inflow 2,880 at year 2. MIRR?Outflows are 1,000 now and 1,100 at year 1; finance rate 10%. PV of outflows?An outflow of 1,210 falls at year 2; finance rate 10%. PV at time zero?2,000 received at year 1 is reinvested at 5% for one year. Value then?An inflow of 1,000 at year 1 is reinvested at 10% until year 3. Value then?Outflows worth 256 today grow to a terminal value of 1,296 in 4 years. MIRR?