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Tall Trees, Inc. is using the modified internal rate of return (MIRR) when evaluating projects. The...

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Finance

Tall Trees, Inc. is using the modified internal rate of return(MIRR) when evaluating projects. The company is able to reinvestcash flows received from the project at an annual rate of 12.40percent. What is the MIRR of a project if the initial costs are$1,386,400 and the project life is estimated as 9 years? Theproject will produce the same after-tax cash inflows of 476,200 peryear at the end of the year.

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4.3 Ratings (672 Votes)
In MIRR we assume that the future positive cash inflows arereinvested at the given rateInitial cash outflow 1386400Future value of cash    See Answer
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Tall Trees, Inc. is using the modified internal rate of return(MIRR) when evaluating projects. The company is able to reinvestcash flows received from the project at an annual rate of 12.40percent. What is the MIRR of a project if the initial costs are$1,386,400 and the project life is estimated as 9 years? Theproject will produce the same after-tax cash inflows of 476,200 peryear at the end of the year.

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