Describe capital budgeting involves calculation of modified

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Reference no: EM1312963

Describe Capital budgeting involves calculation of modified internal rate of return

Alyeska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering. The project has a cost of $275,000 and is expected to provide after-tax annual cash flows of $73,306 for eight years. The firm's management is uncomfortable with the IRR reinvestment assumption and prefers the modified IRR approach. You have calculated a cost of capital for the firm of 10.5 percent. What is the project's MIRR?

Reference no: EM1312963

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