"Your division is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investments will produce the following net cash flows:
Year Project A Project B
1 $ 5,000,000 $20,000,000
2 10,000,000 10,000,000
3 20,000,000 6,000,000
a. What are the two projects' net present values, assuming the cost of capital is 5%? 10%? 15%?
b. What are the two projects' IRRs at these same cost of capital?"© BrainMass Inc. brainmass.com October 2, 2020, 6:01 am ad1c9bdddf
Your suggested tutorial is attached in excel. I show the MIRR at the three levels of cost of capital. IRR does not use a cost of capital and that is shown for you too.