3. (Each question is equally weighted for the entire test to sum to 100%) (the numbers will be different than the one performed in the video but it works the same, contact me with any questions). The financial analysists at the worlds largest franchisor of Dog Groomer- Pet Boutiques, Indiana Bones Temple of Groom has acquired a large construction firm to assist in opening further boutiques across the nation. The construction division of the worlds large Pet Boutique is deciding whether to undertake the construction of multiple stores. You are faced with evaluating a project which basically offers $500,000 upfront to cover initial costs, and other related costs which continue in years 1-4, followed by revenues downstream which begin to payout in year 5.

Therefore, the cash flows of this five-year potential construction project under evaluation entails the following cash flows:

Year	Cash Flow Project Relocation to Chicago, IL
0	+$500,000
1	-$4,000,000
2	-$4,000,000
3	-$4,000,000
4	-$4,000,000
5	+$20,000,000

The question: What is the MIRR for Dog Groomer- Pet Boutique Indiana Bones Temple of Groom? Please perform calculations and make a comment on what you find, i.e. an interpretation based on industry, business, business conditions please. (Assume Discount Rate and Compounding Rate are same=10%)

The company, Indiana Bones Temple of Groom, uses a more accurate approach to the modified internal rate of return calculation. Remember, in this question, the discount/finance rate = reinvestment rate at 10%.

A timeline of cash flows or cash flow diagram allows one to see the size and scale of the cash flows: As in the instructions, be sure to include at least one timeline (in each problem), and the general formula for MIRR, if you use the financial calculator, MS Excel or a cell phone app to solve this problem.