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A firm with a 12 percent cost of capital is considering a project for this years capital budget. The projects expected after-tax cash flows are
A firm with a 12 percent cost of capital is considering a project for this years capital budget. The projects expected after-tax cash flows are as follows:
| Year: | 0 | 1 | 2 | 3 | 4 |
| Cash flow: | -$4,000 | $1,600 | $2,000 | $1,800 | $1,700 |
Calculate the projects modified internal rate of return (MIRR).
| a. | 34.61% | |
| b. | 27.46% | |
| c. | 20.64% | |
| d. | 77.50% | |
| e. | 15.42% |
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