Homework Answers
Project A:
WACC = 6.75%
Future Value of Cash Inflows = $675*1.0675 + $650
Future Value of Cash Inflows = $1,370.5625
MIRR = (Future Value of Cash Inflows / Present Value of Cash
Outflow)^(1/Time Period) - 1
MIRR = ($1,370.5625 / $1,050)^(1/2) - 1
MIRR = 1.305298^(1/2) - 1
MIRR = 1.1425 - 1
MIRR = 0.1425 or 14.25%
MIRR of the project A is 14.25%
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