Given the following cash flows.
Estimate the initial outlay and the MIRR.
Years |
CF_{t} |
0 |
XXX,000? |
1 |
$275,000 |
2 |
$275,000 |
3 |
$275,000 |
4 |
$275,000 |
5 |
$275,000 |
6 |
$0 |
7 |
($150,000) |
Discount rate | 12% | |||||||
0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | |
Cash flows | 275000 | 275000 | 275000 | 275000 | 275000 | 0 | -150000 | |
Present Value | 245535.7 | 219228.3 | 195739.6 | 174767.5 | 156042.4 | 0 | -67852.4 | |
Net Present Value | 923461.1 | |||||||
Profitability Index | 1.164615 | |||||||
Initial Cash flow | 792932.5 |
Nearest thousand value for the Initial Cash flow = $793,000
Discount rate | 12% | |||||||
0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | |
Cash flows | -793000 | 275000 | 275000 | 275000 | 275000 | 275000 | 0 | -150000 |
Present Value | -793000 | 245535.7 | 219228.3 | 195739.6 | 174767.5 | 156042.4 | 0 | -67852.4 |
MIRR | 14.28% |
MIRR = 14.3%
Get Answers For Free
Most questions answered within 1 hours.