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What is Malholtra Inc. (Ehrmann Data System) Project's MIRR?

Question: Malholtra Inc. (Ehrmann Data System) is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note, that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.

WACC: 10.00%
Year: 0 1 2 3 4
Cash flows: $1,175 $300 $320 $340 $360

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MIRR is the modified internal rate of return in which the ...

Solution Summary

This is a very basic solution that demonstrates how MIRR can be calculated using Excel. A brief definition of MIRR is provided as well. Numbers in the Excel may be changed to calculate a new MIRR.