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The project is expected to cost $25,000 today and expected to provide the same amount of cash inflows of $X for the next six

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Answer #1

MIRR = (FV of Cash Inflow/PV of Investment)1/6 - 1

0.16 = (FV of cash inflow/25,000)1/6 - 1

FV of cash inflow = $60,909.91

Calculating X,

Using TVM Calculation,

PMT = [PV = 0, FV = 60,909.91, N = 6,I = 0.12]

PMT = $7,505.67

X = $7,505.67

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