Question
The projected cash flows from a project costing $180,000 today are as follows: years 1-2 $0 years 3-6 $40,000 per year year 7 $70,000 per
The projected cash flows from a project costing $180,000 today are as follows:
years 1-2 $0
years 3-6 $40,000 per year
year 7 $70,000 per year
If the required rate of return is 9 percent,
a. Find the present value of the cash outflows
b. Find the terminal value of the cash inflows
c. Find the MIRR.
d. Given your answer c, should you accept/reject the project?
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Principles Of Finance
Authors: Scott Besley, Eugene F. Brigham
3rd Edition
0324232624, 9780324232622
