Project L costs $45,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 11%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations. Please show steps on a BA II financial calculator.
| Year | Cash flow | Future vlaue | |||||
| 1 | 15000 | 31142.4 | =15000*1.11^7 | ||||
| 2 | 15000 | 28056.22 | |||||
| 3 | 15000 | 25275.87 | |||||
| 4 | 15000 | 22771.06 | |||||
| 5 | 15000 | 20514.47 | |||||
| 6 | 15000 | 18481.5 | |||||
| 7 | 15000 | 16650 | |||||
| 8 | 15000 | 15000 | |||||
| 177891.5 | |||||||
| Future value of cash flow | 177891.5 | ||||||
| intivial investment = | -45000 | ||||||
| we have to use financial calcualtor to solve for MIRR | |||||||
| Put in calcualtor | |||||||
| PV | -45000 | ||||||
| FV | 177891.5 | ||||||
| PMT | 0 | ||||||
| N | 8 | ||||||
| Compute I | 18.75% | ||||||
| MIRR = | 18.75% | ||||||
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