Rate of return would be the irr of the investment

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Reference no: EM131562015

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of 10,000, $10,000, and $10,000 over the next three years, respectively. After that time, Marko feels ABC will be worthless Marko has determined that a 15% rate of return is applicable this potential purchase (a) What is Marko willing to pay today to buy ABC Co.? (b) You already know that the 15% rate of return would be the IRR of the investment. If you have an investment opportunity to reinvest the $10,000 payment at an 10% mutual fund, what would be the MIRR?

Reference no: EM131562015

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