Problem 11-22 MIRR A project has the following cash flows: 0 1 2 3 4 5 -$300 $15

Question

Problem 11-22
MIRR

A project has the following cash flows:

0

1

2

3

4

5

-$300

$158

-$X

$189

$390

$413

This project requires two outflows at Years 0 and 2, but the remaining cash flows are positive. Its WACC is 13%, and its MIRR is 17.52%. What is the Year 2 cash outflow? Round your answer to the nearest cent.

  

0

     

1

     

2

     

3

     

4

     

5

   MIRR What is year 2 cash outflow? A project has the following cash flows: This project requires two outflows at Years 0 and 2, but the remaining cash flows are positive. Its WACC is 13%, and its MIRR is 17.52%. What is the Year 2 cash outflow? Round your answer to the nearest cent.

Explanation / Answer

Steps to get to the solution:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

1)      Assume Year 2 Cash Flows to be -100 (can be any number)

2)      Find the IRR of the cash flows

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