Baba Rafi is considering opening a small sandwich outlet inside the NSU campus. It will require

an initial investment of $20,000 and throughout the next 5 years the project will potentially generate

free cash flows in the following form:

012 3 45

-20,000 600010000-400035006500

Now, as we can see an unconventional cash flow in year 3, please calculate the MIRR to decide

whether Baba Rafi should invest in this project or not? The required rate of return is the WACC

calculated in problem 1.