Gentle Ben Corp decides they want to invest in a new equipment to expand their production of cleaning products. Here are the cashflows for the project: -300,000 upfront investment in period 0, $100,000 inflows for periods 1 and 2, -$70,000 outflow in period 3 and $80,000 inflows in periods 4 and 5. Assume both the discount and reinvestment rate are 11.6%

Delieverable: FIRST (#1): Please model the original (given) Project cash flows. Then model a second set of MODIFIED cashflows for the purpose of calculating MIRR: one negative, upfront cash flow and one, positive, future value lump sum cash flow. NEXT (#2) : After you model all of the cash flows below (original project and modified); calculate the MIRR using 3 methods listed below. Your answer should be: 5.751%

CALCULATE THE MIRR using the

- Return Formula

- = MIRR ( ) Excel formula with Modified Cash Flows

- = MRR ( ) Excel Formula Projected Cash Flows

NNot sure what I did wrong for the first two MIRR Calcs

Gentle Ben Corp decides they want to invest in a new equipment to expand their production of cleaning products. Here are the cashflows for the project: -300,000 upfront investment in period 0, $100,000 inflows for periods 1 and 2,-$70,000 outflow in period 3 and $80,000 inflows in periods 4 and 5. Assume both the discount and reinvestment rate are 11.6% Delieverable: FIRST (#1): Please model the original (given) Project cash flows. Then model a second set of MODIFIED cashflows for the purpose of calculating MIRR: one negative, upfront cash flow and one, positive, future value lump sum cash flow. NEXT (#2): After you model all of the cash flows below (original project and modified); calculate the MIRR using 3 methods listed below. Your answer should be: 5.751% Original Cashflow Outflows Inflows -$300.000.00 -570.900.00 5 - $100,000.00 $100,000.00 -$70,000.000 0 $80,000.00 $ 80,000.00 -300,000 -$300,000.00 $80,000.00 NET CASH FLOWS PV of Outflows FV of Inflows $80,000.00 $100,000.00 $100,000.00 -$70,000.00 -56,204 155,116 138,993 89,280 80,000 -356,204 Modified Cash Flows Outflows Inflows Total Modified Cash Flow 463,389 -356,204 0 0 0 0 463,389 MIRR Calcs: 5.402% Using Return Formula 5.402%] Using =MIRR() Excel Formula with Modified Cash Flows 5.751% Using =MIRR() Excel Formula with Project Cash Flows discount rate reinvestment rate 11.60% 11.60%