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A project has an initial cost of $64,125, expected net cash inflows of $14,000 per year...

A project has an initial cost of $64,125, expected net cash inflows of $14,000 per year for 12 years, and a cost of capital of 11%. What is the project's MIRR?
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Answer #1

Answer:

MIRR = 14.27%

Workings:

Year Initial cost Operating cash flow 2 4 5 7 茻 9 10 ($64,125) $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 ($64,125) $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000$14,000 $14,000 $14,000 14.27% Cash flows MIRR

The above excel with 'show formula'

MIN 3 Year 4 Initial cost 5 Operating cash flow 6 Cash flows 7 MIRFR 14000 14000 14000 14000 1400014000 14000 14000 14000 14000 14000 14000 B4+B5 N4+N5 -MIRNBEN6 11%, 11%)

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