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Compare the projects using the modified irr technique

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Reference no: EM131017048

We are using the same numbers that we used for the previous problems. This time you will compare the projects using the Modified IRR technique. Assume that the reinvestment rate for both projects is 5%.

To get full credit please do the following: Define the technique. Discuss the difference between this method and the others we have used so far. Analyze the numbers in the problem using an excel spreadsheet.

You must use Excel formulas which are on the ribbon in Excel marked Fx to make your calculations whenever possible. Do not write your own formulas unless absolutely necessary.

All information must be in Excel (Word documents will not be read and you will not get credit). Remember to carry out your answers at least two decimal places.

Please summarize in detail all you have learned during the semester on this project. Add a new tab on your original excel file and submit this project.

Attachment:- Capital Investment.xlsx

Verified Expert

The enclosed solution is framed in excel format. The question on MIRR for capital budgeting decision is calculated based on the formulas in excel, i.e. by use of fx ribbon. The solution substantiates the fundamental of the subject and reasonably meets the requirements.

Reference no: EM131017048

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