Question
The Fitness Center is considering including a treadmill in this year's capital budget. The cash outlay for the treadmill is $ 1 comma 640$1,640. The
The Fitness Center is considering including a treadmill in this year's capital budget. The cash outlay for the treadmill is
$ 1 comma 640$1,640.
The firm's cost of capital is
7.1 %7.1%.
After-tax cashflows, including depreciation, are as shown in the following table. Calculate the modified internal rate of return (MIRR) for the project.
End of Year | Cash Flow |
|
1 | $455 | |
2 | 455 | |
3 | 455 | |
4 | 455 | |
5 | 455 |
The PV of all cash outflows is
nothing.
(Round to the nearest cent.)The future value of the cash inflows is
nothing.
(Round to the nearest cent.)The MIRR of the project is
nothing%.
(Round to two decimal places.)
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