Maria is opening a new bakery in town. The expected annual inflation rate is expected to be 4%

and she has determined that her tax rate is 20%. Using Excel, calculate the Modified Rate of Return(MIRR) of the

project to determine if Maria should go forward with the bakery.

\begin{tabular}{|c|c|c|c|} \hline Variables & Pessimistic Senario & Neutral Senario & Optimistic Senario \\ \hline Probability & 20% & 60% & 20% \\ \hline Opening Cost of Bakery & $800,000.00 & $400,000.00 & $200,000.00 \\ \hline Cupcakes Produced Per Year & 100,000 & 250,000 & 300,000 \\ \hline Selling Price Per Cupcake & 2.50 & 3.00 & 4.00 \\ \hline Operating Expenses(Cost per 100 Cupcakes) & 2.00 & 1.50 & 1.00 \\ \hline Clean-Up Costs & $80,000.00 & $50,000.00 & $10,000.00 \\ \hline \end{tabular}