Question

**Problem 11-21**

MIRR

Project X costs $2,000, and its cash flows are the same in Years 1 through 10. Its IRR is 17%, and its WACC is 8%. What is the project's MIRR? Round your answer to two decimal places.

Answer #1

At irr,present value of inflows=present value of outflows.

Hence present value of inflows=$2000

present value of inflows=Present value of annuity

=Annuity[1-(1+interest rate)^-time period]/rate

Hence

2000=Annuity[1-(1.17)^-10]/0.17

2000=Annuity*4.658603628

Annuity=2000/4.658603628

=$429.3131934

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

=$429.3131934[(1.08)^10-1]/0.08

=$429.3131934*14.48656247

=$6219.272395

MIRR=[Future value of inflows/Present value of outflows]^(1/time period)-1

=[6219.272395/$2000]^(1/10)-1

=**12.01%(Approx).**

MIRR
Project A costs $2,000, and its cash flows are the same in Years
1 through 10. Its IRR is 17%, and its WACC is 9%. What is the
project's MIRR? Do not round off the intermediate calculation.
Round your answer to two decimal places. %

Project A costs $2,000, and its cash flows are the same in Years
1 through 10. Its IRR is 16%, and its WACC is 9%. What is the
project's MIRR? Do not round off intermediate calculation. Round
your answer to two decimal places. %
(PLEASE SHOW WORK)

Project A costs $3,000, and its cash flows are the same in Years
1 through 10. Its IRR is 17%, and its WACC is 8%. What is the
project's MIRR? Do not round intermediate calculations. Round your
answer to two decimal places.
____%

Project A costs $4,000, and its cash flows are the same in Years
1 through 10. Its IRR is 18%, and its WACC is 10%. What is the
project's MIRR? Do not round intermediate calculations. Round your
answer to two decimal places.

15. Project A costs $4,000, and its cash flows are the same in
Years 1 through 10. Its IRR is 18%, and its WACC is 12%. What is
the project's MIRR? Do not round intermediate calculations. Round
your answer to two decimal places.
%

Project A requires an initial outlay at t = 0 of $2,000, and its
cash flows are the same in Years 1 through 10. Its IRR is 15%, and
its WACC is 8%. What is the project's MIRR? Do not round
intermediate calculations. Round your answer to two decimal
places.
%____

Project A requires an initial outlay at t = 0 of $2,000, and its
cash flows are the same in Years 1 through 10. Its IRR is 13%, and
its WACC is 12%. What is the project's MIRR? Do not round
intermediate calculations. Round your answer to two decimal
places.
%

Project A requires an
initial outlay at t = 0 of $4,000, and its cash flows are the same
in Years 1 through 10. Its IRR is 13%, and its WACC is 11%. What is
the project's MIRR? Do not round intermediate calculations. Round
your answer to two decimal places.
%

a. Project L costs $42,220.68, its expected cash inflows are
$9,000 per year for 11 years, and its WACC is 12%. What is the
project's IRR? Round your answer to two decimal places.
b.Project L costs $45,000, its expected cash inflows are $13,000
per year for 8 years, and its WACC is 14%. What is the project's
MIRR? Round your answer to two decimal places. Do not round your
intermediate calculations.
c. Project L costs $70,000, its expected cash inflows...

11.
Project A requires an initial outlay at t = 0 of $4,000, and its
cash flows are the same in Years 1 through 10. Its IRR is 15%, and
its WACC is 12%. What is the project's MIRR? Do not round
intermediate calculations. Round your answer to two decimal
places.

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