alleryStart learning →Outlay 2,000 now; inflows 1,100 (yr 1), 1,210 (yr 2); reinvestment 10%. MIRR?
A21%
B5%
C10%
D15%
Answer & Solution
Correct answer: C. 10%
TV = 1,100 x 1.1 + 1,210 = 2,420; 2,420/2,000 = 1.21, square root 1.1, so MIRR = 10%.
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