spring $2024$ Final Exam $-$ Real Exam

$\frac{05}{16}\frac{?}{2022}$

$4.(20/100$ points$)$ MIRR $-$ Modified Internal Rate of Return

The financial analysists at the world's largest franchisor of Dog Groomer$-$ Pet Boutiques, "Indiana Bones Temple of Groom" has acquired a large construction firm to assist in opening further boutiques across the nation. The construction division of the world's large Pet Boutique is deciding whether to undertake the construction of multiple stores. You are faced with evaluating a project, which offers $$500,000$ upfront to cover initial costs, and other related costs, which continue in years $1-4,$ followed by revenues downstream, which begin, to payout in year $5.$

Therefore, the cash flows of this five$-$year potential construction project under evaluation entails the following cash flows:

$\backslash$table$[[$Year$,\backslash$table$[[$Cash Flow Project $-],[$Relocation to Chicago, IL$]]],[0,+$$$500,000$