Alfa Company is considering a new project which requires $300,000 initial investment and an additional $100,000 cash

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Alfa Company is considering a new project which requires $300,000 initial investment and an additional $100,000 cash outflow on the last year of the project. The project will last 7 years and will generate $120,000 per year during 4 years and $50,000 on the fifth year. What is the MIRR of the project?

The company uses 12 percent as WACC (reinvestment rate).

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Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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