In: Finance
Answer the following questions. Polk Products is considering an investment project with the following cash flows:
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Cashflow |
-100 |
90 |
-25 |
-40 |
30 |
80 |
The company’s cost of capital is 10%, and it can get an unlimited amount of capital at that cost.
What is the modified internal rate of return (MIRR) for the Project?
Select one:
a. 15.77%
b. 10.80%
c. 10.18%
d. 6.03%
e. 8.54%