A company is considering a project with the following cash flows: Year 0 1 2 3...

Transcribed Image Text:

A company is considering a project with the following cash flows: Year 0 1 2 3 Cash flow -$90,000 100.000 -40,000 70,000 -10,000 The company's cost of capital is estimated to be 10 percent. What is the modified internal rate of return (MIRR)? A company is considering a project with the following cash flows: Year 0 1 2 3 Cash flow -$90,000 100.000 -40,000 70,000 -10,000 The company's cost of capital is estimated to be 10 percent. What is the modified internal rate of return (MIRR)?

Answer rating: 100% (QA)

To calculate the modified internal rate of return MIRR for the project we first need to calculate the present value of all cash flows at the cost of capital of 10 percent Then we need to find the futu... View the full answer