Onlins (- C Not secure iezto.mheducation.com/hm.tpx Bookmarks 1. Calculate the M

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Onlins (- C Not secure iezto.mheducation.com/hm.tpx Bookmarks 1. Calculate the MIRR of the project MIRR (Modised Internal Rate of Return)-Excel ? HOME INSERTPAGE LAYOUT FORMULAS DATA REVIEWVIEW Blu--a.. Alignment Number: Conditional Form atasce. cells Editng Formatting" TableStyles Cipboard A4 Compute the MIRR statistic for Project I it the appropriate cost of capital is 12 percent.(Do not round intermediate calculations and round your final answer to 2 decimal places.) Should the project be accepted or rejected? Cost of capital

Explanation / Answer

FV of Cash inflow = 5480*(1+12%)3 + 4330*(1+12%)2 + 1670*(1+12%) + 2150 = 17150.96
MIRR = (FV of Cash inflow /PV of Cash outflow)1/4-1 =(17150.96/11300)1/4 -1 = 10.99%

Since MIRR is less than cost of capital it should be rejected.

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