Is the irr you calculated the mirr of the project

Reference no: EM13279390

NPV and IRR Butler International Limited is evaluating a project in Erewhon. The project will create the following cash flows: All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 4 percent.

Year	Cash Flow
0	-950,000
1	285,000
2	345,000
3	415,000
4	255,000

If Butler uses a required return of 11 percent on this project . . .

B. What are the NPV and IRR of the project?

C. Is the IRR you calculated the MIRR of the project?

D. Why or why not?

Reference no: EM13279390

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