MIRR for a Projects Cost of Capital
Not what you're looking for?
Consider the following project.
0 1 2 3 4
|----------------|---------------|---------------|---------------|
- 1000 300 500 200 300
Project's cost of capital = 11%
a) Find the MIRR of the project.
b) Is this project acceptable? Why?
Need help with this problem...
Purchase this Solution
Solution Summary
The solution explains how to calculate the MIRR of the project and determine if the project is acceptable
Solution Preview
In MIRR the intermediate cash flows are compounded at the cost of capital to the terminal year and then we find the rate that will make the PV of terminal year cash flow equal to the initial investment. MIRR can be calculated using the MIRR function in excel. The manual method is
Step 1 - Compound the intermediate cash flows to terminal year at cost of capital
The ...
Purchase this Solution
Free BrainMass Quizzes
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.