Question: Assume that we are evaluating a project that has a cost of $30,000, after-tax cash inflows of $10,000 per year for four years, and a

Assume that we are evaluating a project that has a cost of $30,000, after-tax cash inflows of $10,000 per year for four years, and a discount rate of 10% that is-

Year

Project 'X'

Expected Cash flows

0

(CAD 30,000)

1

10,000

2

10,000

3

10,000

4

10,000

The cash inflows are assumed to be received at the end of each year, the cash inflows would be reinvested at 5%. Calculate MIRR for the project.

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