Project L requires an initial outlay at t = 0 of $40,000, its expected cash inflows are $11,000 per year for 9 years, and its WACC is 11%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.
Note - |
Excel formula for MIRR- |
MIRR (values,financing rate ,investment rate) |
Where , |
Values are the cash flows of each period in series |
Financing rate is the Interest rate |
Reinvestment rate is the discount rate |
Here as financing rate and reinvestment rates are not given separately, WACC will be used as both financing and reinvestment rate.
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