Question
Edelman Engineering is considering a piece of equipment in this years capital budget. The initial cash outlay for the truck is -$76,100. The firms cost
Edelman Engineering is considering a piece of equipment in this years capital budget. The initial cash outlay for the truck is -$76,100. The firms cost of capital, WACC, is 11 percent. The expected cash flows are as follows:
| YEAR | Cash Flow |
| 1 | -$7,500 |
| 2 | -$7,500 |
| 3 | $29,600 |
| 4 | $29,600 |
| 5 | $29,600 |
| 6 | $29,600 |
| 7 | $29,600 |
| 8 | $29,000 |
- Calculate the MIRR. What is your decision?
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The Freedmans Handbook A Practical Guide To Wealth
Authors: Wilfred Brown, Adrian Tullock
1st Edition
1478748400, 978-1478748403
