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Bonus: 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
Bonus: 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: | -$8,000 | $3,100 | $3,400 | $2,600 | $2,500 |
Calculate the projects modified internal rate of return (MIRR).
| a. | 45.00% | |
| b. | 15.08% | |
| c. | 17.60% | |
| d. | 11.47% | |
| e. | 9.73% |
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