Question
Project L has an initial cost of $81,489, and its expected net cash inflows are $21,000 per year for 5 years. The firm has a
Project L has an initial cost of $81,489, and its expected net cash inflows are $21,000 per year for 5 years. The firm has a WACC of 7 percent, and Project Ls risk would be similar to that of the firms existing assets. Calculate Project Ls modified internal rate of return (MIRR).
| a. | 5.20% | |
| b. | 9.09% | |
| c. | 28.85% | |
| d. | 7.00% | |
| e. | 8.19% |
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 10th Edition
1337902578, 978-1337902571
