H A Jx B C D E F G H K 1 Function: FV, Rate; Cell referencing 2 3 Problem 10.22 - Modified Internal Rate of Return (MIRR) 4 PROBLEM 5 Morningside Bakeries recently purchased equipment at a cost of $650,000. 6 Management expects the equipment to generate cash flows of $275,000 in each of the next four years. The cost of capital is 14 percent. 7 80 6 Student Work Area Required: Provide input into cells shaded in gray in this template. Use the FV function with cell references to the Problem area in order to calculate the terminal value of cash flows. Use the Rate function with cell references to the Problem area and Student Work area to calculate the MIRR. Do not leave any portion of the formula for the functions blank - use O's when necessary. Be sure to represent cash inflows as positive values. PV of Costs $ 650,000.00 10 Length of Project 11 Cost of Capital 4 years 14% 22 12 Annual Cash Flows $ 275,000.00 13 14 15 16 17 18 + 19 20 21 22 23 24 25 26 What is the terminal cash flow for this project? Terminal cash flow What is the MIRR for this project? MIRR