A project will cost $20,000 today and yield cash inflows of $15,000 and $25,000 at the end of Year 1 and Year 2, respectively. At the end of Year 3, the project will require an additional clean-up cost of $5,000. The required rate of return for similar projects is 10%. What is the MIRR of this project if we use the re investment approach?

Answer rating: 100% (QA)

We first calculate the future value of cash inflows at the reinvestment rate 10 per year FV Year1 15... View the full answer