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Green Submarine has a project with the following cash flows: Year Cash Flows -$18,050 7,280 13,250 8,119 - 3,250 The discount
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Answer #1

Present value of discounted negative cash flows @discounting rate

= -18050 - 3250/(1+9%)^4 = $ 20,352.38

Future value of positive cash flows at reinvestment rate

= 8,110*(1+11%) + 13,250*(1+11%)^2 + 7,280*(1+11%)^3

=$ 35,383.78

MIRR for the project = (35,383.78/20,352.38)^1/4 -1 = 14.75%

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