Homework Answers
MIRR = (FV of positive cash flows/PV of negative cash flows)^(1/n) -1
=>
MIRR = [(325000/1.09 + 450000/1.09^2 + 540000/1.09^3 + 360000/1.09^4)/1603000]^(1/4) - 1
= [(325000*1.09^3 + 450000 * 1.09^2 + 540000 * 1.09 + 360000)/1603000]^(1/4) - 1
= 4.40%
No, since MIRR is less than cost of capital
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