week 103. a.Find the IRR of a project that returns $17,000 three years

QUESTION

week 103. a.Find the IRR of a project that returns $17,000 three years fromnow if it costs $12,000.b. Find the IRR and MIRR of a project if it has estimated cash flowsof $5,500 annually for seven years if its year 0 investment is$25,000.
a)pleas go throug hthe file years Cash flow 0 -12000 1 17000 2 17000 3 17000 130% here I used excell spread sheet to obtainlek e IRR ( -12000,17000,17000,17000) -ENTERYOU WILL GET 130% OF IRR b)MIRR 0 -25000 1 5500 2 5500 3 5500 4 5500 5 5500 6 5500 7 5500 Irr 12% Mirr 12.063% or with formula= pv of cash out flows = -25000 /(1.12)^0 =

erminal value of acash in flows = 55489.56pV OF CASH OUT FLOWS = 55489.56 / [ 1 MIRR]^725000= 55489.56 / [1 MIRR]^71 MIRR]^7 = 55489.56 /25000[1 MIRR]^7 = 2.21951 MIRR = 2.2195^(1/7)=1 MIRR = 1.12063= MIRR = 1.12063-1=12.06%Thanq

ANSWER:

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