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5. Solving gives MIRR = 21%.

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In a purchase order case the vendor assigned might not respond to a customer query in the desired amount of time required by policy. The vendor must respond within the time required according to policy.
Both the vendor and customer should be notified at each milestone.
To satisfy this requirement, create a service level that specifies two of the following options. (Choose Two)
A. Set the goal to be the required response time based on policy and send notifications to both parties.
B. Set the deadline to be the desired response time based on policy and sends notifications to both parties.
C. Set the deadline to be the required response time based on policy and send notifications to both parties.
D. Set the goal to be the desired response time based on policy and send notifications to both parties.
Answer: C,D

NEW QUESTION: 2
A 5-year project requires an initial outlay of 650. It also needs capital spending of 700 at the end of year 1 and 900 at the end of year 2. It has no revenues for the first 2 years but receives 1,200 in year 3, 1,600 in year 4 and 2,300 in year 5. If the project's cost of capital is 7.5%, the project's MIRR equals ________.
A. 7.5%
B. 21%
C. 17%
D. 14%
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The MIRR is defined as that rate which discounts the terminal value of the cash inflows to equate to the present value of a project's costs (using the project's cost of capital). This can be better understood using actual numbers. The present value of the costs = 650 + 700/1.075 + 900/1.075

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