Using this timeline and example:

MIRR for a More Realistic Plant Upgrade where the WACC = 9%/year

Timeline ($ in Millions)

Years:

Y0: -100

Y1: +35

Y2: -50 +30

Y3: +45

Y4: +40

Y5: +35

PV of Costs = 142.1; FV of Returns = 220.4; MIRR = (220.4 142.1)^.2 1 = (1.551)^.2 1 = 1.0918 1 = 9.18%

Using the above information:

Calculate the NPV for the more realistic plant upgrade on the prior slide assuming the WACC is 9%/year & show all your calculations