Computed the mirr from the modified cash flows

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The Dunder Muffin Company is considering purchasing a new commercial oven that costs ?$390,000. This new oven will produce cash inflows of ?$105,000 at the end of Years 1 through 10. In addition to the cash? inflows, at the end of Year 5 there will be a net cash outflow of ?$195,000. The company has a weighted average cost of capital of 11.8 percent. What is the MIRR of the? investment? Would you make the? investment? Why or why? not? Note that we discounted the? project's negative cash flows back to the present using the? project's required rate of return and then computed the MIRR from the modified cash flows.

The MIRR of the investment with a discount rate of 11.8?

Reference no: EM132412369

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