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6. Hammersmith, Ltd. Is considering a project that has the following cash flows. The WACC (weighted average cost of capital) is 10.0%. Find the MIRR.
6. Hammersmith, Ltd. Is considering a project that has the following cash flows. The WACC (weighted average cost of capital) is 10.0%. Find the MIRR. Note that a project's projected MIRR can be less than the WACC and even negative), in which case it will be rejected. Be sure to outline your steps. (9 points) Year 0 1 2 3 4 Cash flow - 700 (initial cash outflow) $300( negative cash flow at end of year 1) $320 (positive cash flow at end of year 2) $ 340 (positive cash flow at end of year 3) $360 (positive cash flow at end of year 4)
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