Computer Consultants Inc A) 932%
B) 10

question 41

Multiple Choice

Computer Consultants Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR? Note that a project's MIRR can be less than the cost of capital (and even negative) , in which case it will be rejected.
$\begin{array} { l c c c c } &r = 10.00 \%\\\text { Year } & 0 & 1 & 2 & 3 \\\text { Cash Elows } & - \$ 1,000 & \$ 400 & \$ 400& \$ 450\end{array}$

• A) 9.32%
• B) 10.35%
• C) 11.50%
• D) 12.78%
• E) 14.20%

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Definitions:

Compounded Monthly

Refers to the process of calculating and adding interest to an account's balance every month, which then earns interest in subsequent months.

Equal Payments

Payments of the same amount made over a specified period, commonly associated with loans or financing agreements.

Creditor

An individual, bank, or other entities that has lent money or extended credit to another party.

Compounded Quarterly

Calculation of interest every quarter where the interest added also earns interest in the next quarter, compounding the initial investment's growth.