Question

Project L requires an initial outlay at t = 0 of $77,583, its expected cash inflows are $12,000 per year for 11 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places.

Project L requires an initial outlay at t = 0 of $45,000, its expected cash inflows are $10,000 per year for 9 years, and its WACC is 10%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

Answer 1

#1.

Year	Project L Cash flows
0	-$77,583
1	12,000
2	12,000
3	12,000
4	12,000
5	12,000
6	12,000
7	12,000
8	12,000
9	12,000
10	12,000
11	12,000
IRR =	10.10%

#2.

Year	Project L Cash flows
0	-$45,000
1	10,000
2	10,000
3	10,000
4	10,000
5	10,000
6	10,000
7	10,000
8	10,000
9	10,000
WACC	10.00%
MIRR	13.06%

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