• A firm with a 13.5 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:	-$10,000	$3,200	$4,500	$3,400	$3,800

  Calculate the projects modified internal rate of return (MIRR).

  Selected Answer:	c. 10.48%
  Answers:	a. 17.86%
  	b. 16.05%
  	c. 10.48%
  	d. 9.28%
  	e. 49.00%

show the formula used to solve using words