Find the Modified Internal Rate of Return (MIRR) for the following annual series of cash flows, given a discount rate of 10 50 Year 0 $75,000 Year 1 $15,000 Year 2 $16,000 Year 3 $17,000 Year 4 $17,500 and, Year 5 $18,000 A) About 7 35 B) About 7 88 C) About 6 35 D) About 6 88 ...

Find the Modified Internal Rate of Return (MIRR) for the following annual series of cash flows, given

Question:

Find the Modified (MIRR) for the following annual series of cash flows, given a of 10.50%: Year 0: -$75,000; Year 1: $15,000; Year 2: $16,000; Year 3: $17,000; Year 4: $17,500; and, Year 5: $18,000.
A) About 7.35%
B) About 7.88%
C) About 6.35%
D) About 6.88%
Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...