Question

In: Finance

Calculate the MIRR of the following project. Your initial investment cost is $180, and you will receive cash inflows of $55, $142, and $35 over the next three years.

 

Calculate the MIRR of the following project. Your initial investment cost is $180, and you will receive cash inflows of $55, $142, and $35 over the next three years. The discount rate is 13%. Show all of your work. Round to the nearest 0.01%.

Solutions

Expert Solution

Pls find below steps, formula and answer;

MIRR of these cashflows is 13.86%;

In this case, we have used the excel formula for calculating MIRR; and both the finance rate and the reinvestment rates have been considered as 13%;


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