A company is evaluating a project with the following cash flows:
Year | CASH FLOW |
0 | -49,000 |
1 | 13,700 |
2 | 25,200 |
3 | 30,500 |
4 | 19,800 |
5 | -8,500 |
The company uses an interest rate of 10% on all projects, Calculate the MIRR of the project using all three methods
MIRR is defined as follows
Terminal value = 13700 ( 1 + 0.10) 4 + 25200 ( 1 + 0.10)3 + 30500 ( 1 + 0.10)2 + 19800 ( 1 + 0.10)1
Terminal value = 112284.37
MIRR = 15.65 %
Get Answers For Free
Most questions answered within 1 hours.