Galdurheim Co. is evaluating the following investment project. The firm requires a 10% rate of return...
Galdurheim Co. is evaluating the following investment project. The firm requires a 10% rate of return on their investments. Calculate the modified internal rate for return (MIRR3) for the project. (Enter percentages as decimals and round to 4 decimals).
| Year | Project M |
| 0 | -250 |
| 1 | 41 |
| 2 | 48 |
| 3 | 63 |
| 4 | 79 |
| 5 | 88 |
| 6 | 64 |
| 7 | 41 |
Homework Answers
| Year | Cash flow | |||||||
| 0 | $ -250 | |||||||
| 1 | $ 41 | |||||||
| 2 | $ 48 | |||||||
| 3 | $ 63 | |||||||
| 4 | $ 79 | |||||||
| 5 | $ 88 | |||||||
| 6 | $ 64 | |||||||
| 7 | $ 41 | |||||||
| Finance rate | 10% | |||||||
| reinvestment rate | 10% | |||||||
| MIRR | = | =mirr(Cash flows, finance rate, reinvestment rate) | ||||||
| = | =mirr(D2:D9,D11,D12) | |||||||
| = | 0.1236 | |||||||
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