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A project has an initial cost of $67,275, expected net cash inflows of $15,000 per year...

A project has an initial cost of $67,275, expected net cash inflows of $15,000 per year for 6 years, and a cost of capital of 12%. What is the project's MIRR? Round your answer to two decimal places. %

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Answer #1

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

=15000[(1.12)^6-1]/0.12

=15000*8.11518904

=121727.836

MIRR=[Future value of annuity/Present value of outflows]^(1/time period)-1

=[121727.836/67,275]^(1/6)-1

=10.39%(Approx).

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