In: Finance
Compute the MIRR statistic for Project I if the appropriate cost of capital is 13 percent. (Do not round intermediate calculations. 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 % Should the project be accepted or rejected?
A | B | C | |
2 | WACC= | 13% | |
3 | Year | Project X's Cash F;ow | |
4 | 0 | $ (11,500.00) | |
5 | 1 | $ 5,580.00 | |
6 | 2 | $ 4,430.00 | |
7 | 3 | $ 1,770.00 | |
8 | 4 | $ 2,250.00 | |
MIRR= | MIRR(C4:C8,C2,C2) | ||
MIRR= | 12% | ||
In this case MIRR is less than Cost of capital Project should not be accepted. |