Question

Compute the MIRR statistic for Project I and note whether to accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 15 percent. Project I

Answer 1

13%

Explanation:

The computation of MIRR is shown below:-

=MIRR({-1000;400;300;200;300;50},15%,15%)

= 12.666%

or

= 13%

Since the MIRR is 12.67% and the appropriate cost of capital is 15% so the project should be rejected as it is less than the cost of capital

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