Your venture has signed a new consulting contract that will require you to invest in new analytical software and a new computer. The contract will generate the following periodic cash flows. You have used bank credit to finance the cost of the software and hardware. The financing rate is 6%. Cash flows generated from the project will be reinvested at 4%. The MIRR of the project is between 6% and 7%.

time cash flow

0 -$200,000

1 $20,000

2 $30,000

3 $50,000

4 $65,000

5 $80,000

True

False