Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Experience the ease of finding accurate answers to your questions from a knowledgeable community of professionals. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

What is the Modified Internal Rate of Return (MIRR) of a project with the following cash flows? The discounting rate is 12%.

Year Cash Flow
0 -1,200,000
1 400,000
2 500,000
3 500,000
4 500,000
5 500,000

a. 9.90%
b. 23.49%
c. 20.72%
d. 23.02%
e. 16.62%
f. 34.35%
g. 20.26%

Sagot :

Answer:

g. 20.26%

Explanation:

The computation of the MIRR is as follows;

Here we applied the MIRR formula in an excel

Year    Cash flow

0        -1,200,000

1          400,000

2         500,000

3         500,000

4         500,000

5         500,000

After applying the MIRR formula, the MIRR is 20.26%

Therefore the correct option is g.

View image andromache
Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.