Question
The down payment or equity needed for this investment is $50,000 (outflow) N Cash Flow 1 $12,000 Savings Rate is: 2% and Loan Rate is
The down payment or equity needed for this investment is $50,000 (outflow)
N Cash Flow
1 $12,000 Savings Rate is: 2% and Loan Rate is 8%
2 4,000
3 -3,500
4 6,000
Sale 4 $35,000
Calculate the adjustment rate to use for MIRR:
a. Do MIRR for the above example:
b. Partition and do Duration using the MIRR rate for the chart below:
N Cash Flow Present Value N N*PV
c. Complete the Risk Chart below:
Reference Case Less Risk More Risk
MIRR _______ __________ _________
%CF ________ __________ _________
%Sale ________ __________ _________
Duration_______ __________ _________
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