Suppose we are not given cost of capital in the question and we need to calculate cost of capital with the help of IRR (we got 14% IRR), and question tells us to re-invest at IRR as IRR we found is the cost of capital as we are not given in the question. PV of the return phase is 2258 & PV of the investment phase is 2000, duration of project is 5 years.
when calculated MIRR using the above formula MIRR is greater than IRR.
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4y ago#1Why are you assuming that the cost of capital is 14%? There is no reason at all why that should be the case.
Tell me where to find the question you are referring to.
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