Calculate using MIRR through Excel.

	A	B	A-B
	Drive Up	Hawaii	Difference
0	$(58,500.00)	$ (48,500.00)	$ (10,000.00)
1	$ 6,648.00	$ -	$ 6,648.00
2	$ 6,648.00	$ -	$ 6,648.00
3	$ 6,648.00	$ -	$ 6,648.00
4	$ 6,648.00	$ -	$ 6,648.00
5	$ 6,648.00	$ -	$ 6,648.00
6	$ 6,648.00	$ -	$ 6,648.00
7	$ 6,648.00	$ -	$ 6,648.00
8	$ 6,648.00	$ -	$ 6,648.00
9	$ 6,648.00	$ -	$ 6,648.00
10	$ 36,648.00	$ 138,000.00	$(101,352.00)

7A-17 An investor is considering two mutually exclusive projects. She can obtain a 6% before-tax rate of return on external investments, but she requires a minimum attractive rate of return of 7% for these projects. Use a 10-year analysis period to com- pute the incremental rate of return from investing in Project A rather than Project B Project A: Build Drive-Up Photo Shop Project B: Buy Land in Hawaii $58,500 $ Initial capital investment Net uniform 6648 0 annual income Salvage value 30,000 138,000 10 years hence Computed rate of return 8% 11%