Question Help (Related to Checkpoint 11.6) (MIRR calculation) Emily\'s Soccer Ma

Question

Question Help (Related to Checkpoint 11.6) (MIRR calculation) Emily's Soccer Mania is considering building a new plant. This project would require an initial cash outlay of $8 million and would generate annual cash inflows of $3.8 million per year for years one through four. In year five the project will require an investment outlay of $4.2 million. During years 6 through 10 the project will provide cash inflows of $4.2 million per year. Calculate the project's MIRR, given a discount rate of 13 percent. The MIRR of the project with a discount rate of 13% is | |%. (Round to two decimal places.) your ans

Explanation / Answer

MIRR can be calculated using Excel.

Year

Cash flow

0

-8000000

1

3800000

2

3800000

3

3800000

4

3800000

5

-4200000

6

4200000

7

4200000

8

4200000

9

4200000

10

4200000

MIRR

20.36%

Formla is =MIRR(Data range,.13,.13)

Year

Cash flow

0

-8000000

1

3800000

2

3800000

3

3800000

4

3800000

5

-4200000

6

4200000

7

4200000

8

4200000

9

4200000

10

4200000

MIRR

20.36%

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