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Project Bab Al Bahrain costs BD 1,000 and its cash flows are the same in year 1

ID: 2724008 • Letter: P

Question



Project Bab Al Bahrain costs BD 1,000 and its cash flows are the same in year 1 through 10.Its IRR is 12% and its discount rate (cost of capital)is 10%.what is the project's MIRR ?

Project Bab Al Bahrain costs BD 1,000 and its cash flows are the same in year 1 through 10.Its IRR is 12% and its discount rate (cost of capital)is 10%.what is the project's MIRR ?
Project Bab Al Bahrain costs BD 1,000 and its cash flows are the same in year 1 through 10.Its IRR is 12% and its discount rate (cost of capital)is 10%.what is the project's MIRR ?

Explanation / Answer

use MIRR formuale in excel.

=MIRR(cash flows,finance rate,reinvest rate)

cash flows=-1000,1000,1000,1000,1000,1000,1000,1000,1000,1000,1000

finance rate=10%

reinvest rate=12%

MIRR=33%