Question

Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR?

WACC: 12.25%

Cash flows -

Year 0: - $850
Year 1: $300
Year 2: $320
Year 3: $340
Year 4: $360

Answer 1

MIRR = 17%

Step-by-step explanation:

The computation of the MIRR of a project is shown below:

Year Cash flows ( in $)

0 -850

1 300

2 320

3 340

4 360

WACC 12.25%

MIRR 17%

We simply applied the MIRR over the excel

We simply applied the attached formula so that the correct percentage could come

And, the same is to be considered