Question
A firm with a 9 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 9 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: | -$15,000 | $5,700 | $4,700 | $6,900 | $6,800 |
Calculate the projects modified internal rate of return (MIRR).
| a. | 60.67% | |
| b. | 20.96% | |
| c. | 28.87% | |
| d. | 16.14% | |
| e. | 12.59% |
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Sport Finance
Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello
3rd Edition
1450421040, 978-1450421041
