Find the Modified Internal Rate of Return (MIRR)for the following annual series of cash flows,given a discount rate of 10.50%: Year 0: -$75,000;Year 1: $15,000;Year 2: $16,000;Year 3: $17,000;Year 4: $17,500;and,Year 5: $18,000.
A)About 6.35%
B)About 6.88%
C)About 7.35%
D)About 7.88%

Question

Quizplus · Accepted Answer

MIRR is a financial calculation used to evaluate the profitability of an investment that has both positive and negative cash flows. It takes into account the time value of money and the reinvestment rate of the positive cash flows. In this case, the MIRR is approximately 6.35%.

Find the Modified Internal Rate of Return (MIRR)for the Following