Question: Project X requires an initial outlay at 0 (or t=0) of $35,000. Its expected cash inflows are $8,000 per year for 9 years, and its
Project X requires an initial outlay at 0 (or t=0) of $35,000. Its expected cash inflows are $8,000 per year for 9 years, and its WACC is 12%.
d) Calculate the FV (Future Value) of the projects cash flows assuming they are reinvested at the WACC (Weighted Average Cost of Capital). e) Given your calculations in part a, and the information about the present value and the number of periods given above (PV and N), what is the projects MIRR (Modified Internal Rate of Return)
*PLEASE SHOW ALL THE CALCULATIONS
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
