compute the MIRR statistic for project I if the appropriate cost of capital is 13 percent (Do not round intermediate calculations and round your final answer to 2 decimal places)
Project I | |||||
Time | 0 | 1 | 2 | 3 | 4 |
Cash flow | -$11,500 | $5,580 | $4,430 | $1,770 | $2,250 |
MIRR is 11.79%
Working:
Year | Cash Flow | |
0 | $ -11,500.00 | |
1 | $ 5,580.00 | |
2 | $ 4,430.00 | |
3 | $ 1,770.00 | |
4 | $ 2,250.00 | |
Finance rate | 13% | |
Reinvestment rate | 13% | |
MIRR | =mirr(B2:B6,finance rate,reinvestment rate) | |
= 11.79% | ||
Note: | ||
B2:B6 is the value of cash flows from year 0 to year 4. |
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