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Find the modified internal rate of return (MIRR) for the following series of future cash flows...

Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able to reinvest cash flows received from the project at an annual rate of 12.92 percent. the initial outlay is $439,500.

Year 1: $130,600
year 2: 178,600
year3: 147,800
Year 4: 133,600
Year 5: 155,700

Round answer to two decimal places.

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Answer #1

Future value of 1 cash flow = 130,600 (1 + 0.1292)4 = 212,337.478

Future value of 2 cash flow = 178,600 (1 + 0.1292)3 = 257,154.4612

Future value of 3 cash flow = 147,800 (1 + 0.1292)2 = 188,458.6922

Future value of 4 cash flow = 133,600 (1 + 0.1292)1 = 150,861.12

Future value of 5 cash flow = 155,700 (1 + 0.1292)0 = 155,700

Future value = 212,337.478 + 257,154.4612 + 188,458.6922 + 150,861.12 + 155,700 = 964,511.7514

MIRR = (Future value / initial investment)1/n - 1

MIRR = (964,511.7514 / 439,500)1/5 - 1

MIRR = 1.1702 - 1

MIRR = 0.1702 or 17.02%

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