Compute the MIRR for this project

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Reference no: EM132542314

Question - You are considering a project with an initial cash outlay of $75,000 and a required rate of return of 11%. The expected annual free cash flows from the project are as follows:

Year

Cash flow

1

17,000

2

19,800

3

25,300

4

29,800

5

38,500

6

45,000

Required -

a. Indicate whether this project is viable or not using the NPV and PI methods.

b. Compute the MIRR for this project assuming the cash flows are reinvested.

Reference no: EM132542314

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