find MIRR for a project with a cost of -$20,000 and subsequent cash flows of 10,000;...

50.1K

Verified Solution

Question

Finance

find MIRR for a project with a cost of -$20,000 and subsequent cashflows of 10,000; $40,000, -$5,000; -$30,000. use wacc of 6%. willyou proceed with this project? why or why not ?

Answer & Explanation Solved by verified expert
3.5 Ratings (269 Votes)
Combination approach All negative cash flows are discounted back to the present and all positive cash flows are compounded out to the end of the projects life Thus year 4 modified cash flow119101644944 5685416 Thus year 0    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

find MIRR for a project with a cost of -$20,000 and subsequent cashflows of 10,000; $40,000, -$5,000; -$30,000. use wacc of 6%. willyou proceed with this project? why or why not ?

Other questions asked by students