Winston Clinic is evaluating a project that costs $50,000 and has expected net cash inflows of...

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Winston Clinic is evaluating a project that costs $50,000 andhas expected net cash inflows of $12,000 per year for eight years.The first inflow occurs one year after the cost outflow, and theproject has a cost of capital of 12%. What is the project’s MIRR?(hint: remember to put the answer as a percentage). Choice: 13.9%Choice: 14.5% Choice: 5.80% Choice: 22.1%

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3.8 Ratings (588 Votes)

14.5%

Year	Cash flows
0	$ -50,000
1	12,000
2	12,000
3	12,000
4	12,000
5	12,000
6	12,000
7	12,000
8	12,000

Cost of capital	12%

MIRR	=MIRR(values,finance rate,reinvestment rate)
	=MIRR(B2:B10,B12,B12)
	14.5%

B2:B10 is the range of cash flows and B12 is the cost of capital and reinvestment rate.

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Winston Clinic is evaluating a project that costs $50,000 andhas expected net cash inflows of $12,000 per year for eight years.The first inflow occurs one year after the cost outflow, and theproject has a cost of capital of 12%. What is the project’s MIRR?(hint: remember to put the answer as a percentage). Choice: 13.9%Choice: 14.5% Choice: 5.80% Choice: 22.1%

Winston Clinic is evaluating a project that costs $50,000 and has expected net cash inflows of...

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Finance

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