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Dry-Sand Company Is Considering Investing in a New Project

Question 2

Multiple Choice

Dry-Sand Company is considering investing in a new project. The project will need an initial investment of $1,200,000 and will generate $600,000 (after-tax) cash flows for three years. Calculate the MIRR (modified internal rate of return) for the project if the cost of capital is 15%.


A) 14.5%
B) 18.6%
C) 20.2%
D) 23.4%

Correct Answer:

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