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    Calculate project's modified IRR (MIRR)?

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    Los Angeles Lumber Company (LALC) is considering a project with a cost of $1,000 at time = 0 and inflows of $300 at the end of Years 1 - 5. LALC's cost of capital is 10 percent. What is the project's modified IRR (MIRR)?

    a. 10.0%
    b. 12.9%
    c. 15.2%
    d. 18.3%
    e. 20.7%

    © BrainMass Inc. brainmass.com June 3, 2020, 11:32 pm ad1c9bdddf
    https://brainmass.com/business/modified-internal-rate-of-return/los-angeles-lumber-co-project-modified-irr-mirr-284421

    Solution Preview

    Solution: b. 12.9%

    Tabular/Numerical solution:

    TV = $300(FVIFA 10%,5 ) = $300(6.1051) = $1,831.53. ...

    Solution Summary

    This post gives a detailed solution for calculating project's modified IRR (MIRR).

    $2.19

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