Cool Water Drinks is considering a proposed project with the following cash flow
ID: 2706633 • Letter: C
Question
Cool Water Drinks is considering a proposed project with the following cash flows. Should this project be accepted based on the combined approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 12.6 percent? Why or why not?
Cool Water Drinks is considering a proposed project with the following cash flows. Should this project be accepted based on the combined approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 12.6 percent? Why or why not?Explanation / Answer
Yes, the MIRR is 8.81 percent.