Question

Homework: HW_CH10 Save Score: 0 of 3 pts 2 of 3 (0 complete) HW Score: 0%, 0 of 19 pts Problem 10-27 (similar to) (MIRR calculation) Artie's Wrestling Stuff is considering building a new plant. This plant would require an initial cash outlay of 58 million and would generato annual from cash inflows of $3 million per year for 8 years. Calculate the project's MIRR given: a. A required rate of return of 8 percent b. A required rate of return of 11 percent c. A required rate of retum of 14 percent a. If the required rate of retum is 8 percent, what is the project's MIRR? O % (Round to two decimal places.)

Answer 1

A B с D E F G н 1 2 we first put the cash flows year wise 3 4 Year 5 0 Cash flows -8.00 3.00 6 1 2 3.00 8 3 3.00 3.00 4 5 3.00 10 11 6 3.00 12 7 3.00 13 8 3.00 MIRR MIRR(CS:C13,8%,8%) 18.88% 14 15 a) required rate is 8% 16 17 18 19 b) required rate is 11% 20 21 22 23 c) required rate is 14% 24 MIRR MIRR(C5:C13,11%,11%) 20.51% MIRR MIRR(C5:C13,14%,14%) 22.17% 25 26 27