Question: ABC Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected
ABC Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.
| WACC: | 10.00% | ||||
| Year | 0 | 1 | 2 | 3 | 4 |
| Cash flows | -$1,175 | $300 | $320 | $340 | $360 |
| 1. | 5.13% | |
| 2. | 6.12% | |
| 3. | 6.66% | |
| 4. | 7.72% | |
| 5. | 7.65% |
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