Reference no: EM132029633

MIRR unequal lives. Peter's Investments is looking at two project opportunities for a parcel of land the company currently owns. The first project is a music venue, and the second project is an athletic complex. The projected cash flow of the music venue is an initial cost of $1,570,000 with cash flows over the next six years of $190,000 (year one), $240,000 (year two), $300,000 (years three through five), and $1,800,000 (year six), at which point Peter plans to sell the music venue. The athletic complex has the following cash flows: initial cost of $2,350,000 with cash flows over the next four years of $350,000 (years one through three) and $3,450,000 (year four), at which point Peter plans to sell the complex. The appropriate discount rate for the music venue is 11.0% and the appropriate discount rate for the athletic complex is 11.5%.

The MIRR of the music venue project is: ______%

The MIRR of the athletic complex is : _____%

The MIRR of the music venue when adjusting for unequal lives is: _____%

The MIRR of the athletic complex when adjusting for unequal lives is: _______%