What are the strengths and weaknesses of mirr

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Reference no: EM131962352

1) An investment project has an installed cost of 518,297. The cash flows oover the 4 year life of the investment are projected to be 287,636, 203,496, 103,802 and 92,556, respectively. What is the NPV of this project if the discount rate is 12.5 percent? Should this project be accepted?

2) Slow Ride Corp is evaluating a project with the following cash flows: Year 0: -29000, Year 1: 11,200, Year 2:13,900, Year 3:45,800, Year 4:-12900, Year 5:-9400. The company uses an 8 percent discount rate on all of its projects. Calculate MIRR of this project. Should this project be accepted?

3) What are the strengths and weaknesses of MIRR?

Reference no: EM131962352

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