Discuss about the discounting mirr

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Reference no: EM131935836

Question: Assume that the Boilermaker Investment Company takes on a project that will have them heating ten buildings at Purdue University for a period of 3 years. The project costs 3 million dollars up front, then B.I.C. will receive 2.2 million dollars for 3 years, then in the fourth year B.I.C. will have dismantling costs of 3 million dollars. If the cost of capital is 8%, which MIRR is higher, the discounting MIRR or the compounding MIRR?

Reference no: EM131935836

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