Question
Project X requires an initial outlay at (or t=0) of $35,000. Its expected cash inflows are $8,000 per year for 9 years, and its WACC
Project X requires an initial outlay at (or t=0) of $35,000. Its expected cash inflows are $8,000 per year for 9 years, and its WACC is 12%.
D) Calculate the FV (Future Value) of the projects cash flows assuming they are reinvested at the WACC (Weighted Average Cost of Capital).
*PLEASE SHOW ALL THE CALCULATIONS
E) Given your calculations in part a, and the information about the present value and the number of periods given above (PV and N), what is the projects MIRR (Modified Internal Rate of Return)
*PLEASE SHOW ALL THE CALCULATIONS
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
