Question: You are evaluating a potential new project. The initial cost associated with this project is $695,000. The project has an expected life of 7 years.

You are evaluating a potential new project. The initial cost associated with this project is

$695,000. The project has an expected life of 7 years. The estimated cash flows for this project in

years 1 through 7 are:

Year 1:

$95,000

Year 2:

$115,000

Year 3:

$175,000

Year 4:

$240,000

Year 5:

$300,000

Year 6:

$275,000

Year 7:

$180,000

What is the MIRR of this project, using a reinvestment rate of 9%?

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