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Oriole Bakeries recently purchased equipment at a cost of $537,500. Management expects the equipment to generate...

Oriole Bakeries recently purchased equipment at a cost of $537,500. Management expects the equipment to generate cash flows of $284,250 in each of the next four years. The cost of capital is 16 percent. What is the MIRR for this project? (Round intermediate calculations to 3 decimals e.g. 15.123 and final answer to 1 decimal e.g. 15.2%. Do not round factor values.)

MIRR = %

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Answer #1

Formula for MIRR = (Future value /Initial outlay)(1/n) - 1 Future value calculation using excel FV Function : Future value =

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