1) Modified

Follow these steps describing how the MIRR is calculated to complete the table for Project X. - The Project X has just one outflow: $1,000 at t=0, this means that it is not discounted and its PV=$1,000. (Note: Ir the project has more than one outflow, you need to find the PV at t=0 for each one and sum them to arrive at the PV of total costs for use in the Mira calculation.) - You need to find the future value of each inflow compounded at the wacC out to the terminal yeat, which is the year the last inflow is received. (Hint: Assume that cash flows are reinvested at the WACC.) - You have the cost at t=0,51,000, and the FV. There is some discount rate that will cause the PV of the terminal value to equal the cost. That interest rate is defined as the MIRR. (Note: Using your financial calculator, enter N=4,PV=1.000,PMT=0, and FV. Then when you press the IYR key, you get the MtRR. Some calculators have a built-in MirR function that streamines the process. In Excel, you can use either the RATE function or MIRR function to calculate the MIRR.) Complete the following table