Save Score: 0 of 3 pts 4 of 10 (0 complete) ? HW Score: 0%, 0 of P11-14 (similar

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Save Score: 0 of 3 pts 4 of 10 (0 complete) ? HW Score: 0%, 0 of P11-14 (similar to) EQuestion Help (Related to Checkpoint 11.6) (MIRR calculation) Emily's Soccer Mania is considering building a new plant. This project would require an initial cash outlay of $8.5 million and would generate annual cash inflows of $2 million per year for years one through four In year five the project will require an investment outlay of $5.5 million. During years 6 through 10 the project will provide cash inflows of $5.5 million per year. Calculate the project's MIRR, given a discount rate of 14 percent The MRR of the project with a discount rate of 14% is ?%. (Round to two decimal places.) pter voumanswer in the

Explanation / Answer

Use MIRR function in Excel

MIRR = 17.70%

Cash flows Year                     (8.500) 0                       2.000 1                       2.000 2                       2.000 3                       2.000 4                     (5.500) 5                       5.500 6                       5.500 7                       5.500 8                       5.500 9                       5.500 10

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