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Find the modified internal rate of return (MIRR) for the following series of future cash flows...

Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able to reinvest cash flows received from the project at an annual rate of 13.05 percent.The initial outlay is $463,100.

Year 1: $131,900

Year 2: $133,600

Year 3: $134,900

Year 4: $141,800

Year 5: $181,300

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Answer #1

=(Future Value/Initial Outlay)^(1/t)-1
=((131900*1.1305^4+133600*1.1305^3+134900*1.1305^2+141800*1.1305^1+181300)/463100)^(1/5)-1
=14.7774%

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