Question: Calculate using MIRR through Excel. A B A-B Drive Up Hawaii Difference 0 $(58,500.00) $ (48,500.00) $ (10,000.00) 1 $ 6,648.00 $ - $ 6,648.00
Calculate using MIRR through Excel.
| A | B | A-B | |
| Drive Up | Hawaii | Difference | |
| 0 | $(58,500.00) | $ (48,500.00) | $ (10,000.00) |
| 1 | $ 6,648.00 | $ - | $ 6,648.00 |
| 2 | $ 6,648.00 | $ - | $ 6,648.00 |
| 3 | $ 6,648.00 | $ - | $ 6,648.00 |
| 4 | $ 6,648.00 | $ - | $ 6,648.00 |
| 5 | $ 6,648.00 | $ - | $ 6,648.00 |
| 6 | $ 6,648.00 | $ - | $ 6,648.00 |
| 7 | $ 6,648.00 | $ - | $ 6,648.00 |
| 8 | $ 6,648.00 | $ - | $ 6,648.00 |
| 9 | $ 6,648.00 | $ - | $ 6,648.00 |
| 10 | $ 36,648.00 | $ 138,000.00 | $(101,352.00) |
7A-17 An investor is considering two mutually exclusive projects. She can obtain a 6% before-tax rate of return on external investments, but she requires a minimum attractive rate of return of 7% for these projects. Use a 10-year analysis period to com- pute the incremental rate of return from investing in Project A rather than Project B Project A: Build Drive-Up Photo Shop Project B: Buy Land in Hawaii $58,500 $ Initial capital investment Net uniform 6648 0 annual income Salvage value 30,000 138,000 10 years hence Computed rate of return 8% 11%
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