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Function: FV$,$ Rate; Cell referencing

Problem $10\mathrm{.}22-$ Modified Internal Rate of Return $($MIRR$)$

PROBLEM

Morningside Bakeries recently purchased equipment at a cost of

$$650,000.$ 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.

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 $0\text{'}$s when necessary. Be sure to

represent cash inflows as positive values.

What is the terminal cash flow for this project?

Terminal cash flow

What is the MIRR for this project?

MIRR