Question

You're evaluating a project with the following cash flows: initial investment is $86 million dollars, and cash flows for years 1-3 are $14, $62 and $86 million dollars, respectively. The firm's WACC is 9%. What is this project's MIRR?

Answer 1

Project's MIRR is 25.55%

Year		Cash Flow
0		$         -86
1		$          14
2		$          62
3		$          86
Finance rate	9%
Reinvestment rate	9%
MIRR		=mirr(values,finance rate,reinvestment rate)
		=mirr(C2:C5,C7,C8)
		= 25.55%
Note:
C2:C5 is the value of cash flows from year 0 to 3.
C7 is the finance rate
C8 is the reinvestment rate