Look again at the project cash flows in Problem 10 Calculate the modified IRR as defined in Footnote 4 in Section 5 3 Assume the cost of capital is 12 Now try the following variation on the MIRR concept Figure out the fraction x such that x times C 1 and C 2 has the same present value as (minus) C 3 Define the modified project IRR as the solution of Now you have two MIRRs Which is more meaningful If you can 't decide, what do you conclude about the usefulness of MIRRs Data from 10 Calculate the IRR (or IRRs) for the following project , C3 xC, 1 12 1 122

Question: Look again at the project cash flows in Problem 10. Calculate the modified IRR as defined in Footnote 4 in Section 5.3. Assume the cost

Look again at the project cash flows in Problem 10. Calculate the modified IRR as defined in Footnote 4 in Section 5.3. Assume the cost of capital is 12%.

Now try the following variation on the MIRR concept. Figure out the fraction x such that x times C₁ and C₂ has the same present value as (minus) C₃.

Define the modified project IRR as the solution of

Now you have two MIRRs. Which is more meaningful? If you can't decide, what do you conclude about the usefulness of MIRRs?

Data from 10.

Calculate the IRR (or IRRs) for the following project:

, C3 xC, + 1.12 1.122

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