MIRR
A project has an initial cost of $40,500, expected net cash inflows of $15,000 per year for 12 years, and a cost of capital of 14%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.
MIRR = nth root of (Sum of terminal cash flows / initial investment) - 1
| Period | Cash flows | FV factor | Terminal value |
| 1 | $15,000 | $4.226 | $63,393.5 |
| 2 | $15,000 | $3.707 | $55,608.3 |
| 3 | $15,000 | $3.252 | $48,779.2 |
| 4 | $15,000 | $2.853 | $42,788.8 |
| 5 | $15,000 | $2.502 | $37,534.0 |
| 6 | $15,000 | $2.195 | $32,924.6 |
| 7 | $15,000 | $1.925 | $28,881.2 |
| 8 | $15,000 | $1.689 | $25,334.4 |
| 9 | $15,000 | $1.482 | $22,223.2 |
| 10 | $15,000 | $1.300 | $19,494.0 |
| 11 | $15,000 | $1.140 | $17,100.0 |
| 12 | $15,000 | $1.000 | $15,000.0 |
| Total | $4,09,061.2 |
MIRR = 12th root (409061.2 / 40500) - 1
= 21.25%
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