TL Lumber Is Evaluating a Project with Cash Flows of -$12,800

question 19

Multiple Choice

TL Lumber is evaluating a project with cash flows of -$12,800, $7,400, $11,600, and -$3,200 for Years 0 to 3, respectively. Given an interest rate of 8 percent, what is the MIRR using the discounted approach?

• A) 13.25 percent 
• B) 14.08 percent 
• C) 15.40 percent 
• D) 14.36 percent 
• E) 19.23 percent 

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Definitions:

Negative

In the context of psychology, refers to something detrimental or harmful; in general, it represents the opposite of positive.

Guard

To protect or watch over someone or something in order to prevent harm or ensure safety.

Cognitive-behavioral

A therapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Rational-emotive

A form of psychotherapy focusing on identifying and changing irrational beliefs that cause emotional and behavioral issues.