Question

Project L costs $65,000, its expected cash inflows are $12,000 per year for 8 years, and its WACC is 9%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

Answer 1

Year			Cash flows
0			$             -65,000
1			$               12,000
2			$               12,000
3			$               12,000
4			$               12,000
5			$               12,000
6			$               12,000
7			$               12,000
8			$               12,000
Finance rate			9%
Reinvestment rate			9%
MIRR			=mirr(D2:D10,finance rate, reinvestment rate)
			9.29%
Note:
D2:D10 is the cash flows from year 0 to 8.