Calculation of modified internal rate of return

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Reference no: EM1310998

Calculation of Modified Internal Rate of Return [MIRR] of even cash flows.

Alaska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project that is under consideration. This project has a cost of $2,750,000 and is expected to provide after-tax cash flows of $733,060 per year for 8 years. ASI's management is uncomfortable with the IRR reinvestment assumption and prefers the modified IRR approach. You have calculated a cost of capital of 12% for ASI.

Calculate this project's MIRR (modified IRR).

Reference no: EM1310998

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