Problem $12-29($calculator version$)$

The Caffeine Coffee Company uses the MIRR. The firm has a cost of capital of $12$ percent. The project being analyzed has a $$27,000$ initial investment and is expected to produce the following cash flows:

Year Cash Flow

$1$ $$15,000$

$212,000$

$39,000$

a$.$ What is the MIRR? $($Use a Financial calculator to arrive at the answers. Round the final answer to $2$ decimal places.$)$

MIRR

$15\mathrm{.}18$

$\%$

b$.$ What is the traditional IRR? $($Round the final answer to $1$ decimal place.$)$

Traditional IRR

$17\mathrm{.}5$

$\%$