Calculate mirr of the project using discounting approach

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Reference no: EM132009775

1. An investor enters into a short forward contract on 119 thousand GBP for 1.53 USD each. How much does the investor profit if the exchange rate at the end of the contract is 1.67 USD/GBP? Note: GBP is British pounds, USD is US dollar.

2. RAK Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 29,800 1 12,000 2 14,700 3 16,600 4 13,700 5 – 10,200 The company uses a discount rate of 13 percent and a reinvestment rate of 6 percent on all of its projects. Calculate the MIRR of the project using the discounting approach.

Reference no: EM132009775

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