Re-investment rate figure into the problem


Problem:

Given the following estimated CF (in millions of dollars) for a project with a required rate of return of 9% and a reinvestment rate of 13%:

Period: t=0 t=1 t=2 t=3 t=4
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Cash Flow: (350) 125 75 200 125

a. Compute PB
b. Compute DPB
c. Compute NPV
d. Compute IRR
e. Compute MIRR
f. Compute MNPV

Where does the 9% required rate of return and the 13% re-investment rate figure into the problem/equation?

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Finance Basics: Re-investment rate figure into the problem
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