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(Related to Checkpoint 11.6) (MIRR calculation) Emily's Soccer Mania is considering building a new plant. This project would require an initial cash outlay of $8 million and would generate annual cash inflows of $2.5 million per year for years one through four. In year five the project will require an investment outlay of $4.5 million. During years 6 through 10 the project will provide cash inflows of $4.5 million per year. Calculate the project's MIRR, given a discount rate of 14 percent. The MIRR of the project with a discount rate of 14% is ☐ %. (Round to two decimal places.)

(Related to Checkpoint 11.6) (MIRR calculation) Emily's Soccer Mania is considering building a new plant. This project would require an initial cash outlay of $8 million and would generate annual cash inflows of $2.5 million per year for years one through four. In year five the project will require an investment outlay of $4.5 million. During years 6 through 10 the project will provide cash inflows of $4.5 million per year. Calculate the project's MIRR, given a discount rate of 14 percent. The MIRR of the project with a discount rate of 14% is ☐ %. (Round to two decimal places.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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(Related to Checkpoint 11.6) (MIRR calculation) Emily's Soccer Mania is considering building a new plant. This project would require an initial cash outlay of $8 million and would generate annual cash inflows of $2.5 million per year for years one through four. In year five the project will require an investment outlay of $4.5 million. During years 6 through 10 the project will provide cash inflows of $4.5 million per year. Calculate the project's MIRR, given a discount rate of 14 percent. The MIRR of the project with a discount rate of 14% is ☐ %. (Round to two decimal places.)
Transcribed Image Text:(Related to Checkpoint 11.6) (MIRR calculation) Emily's Soccer Mania is considering building a new plant. This project would require an initial cash outlay of $8 million and would generate annual cash inflows of $2.5 million per year for years one through four. In year five the project will require an investment outlay of $4.5 million. During years 6 through 10 the project will provide cash inflows of $4.5 million per year. Calculate the project's MIRR, given a discount rate of 14 percent. The MIRR of the project with a discount rate of 14% is ☐ %. (Round to two decimal places.)
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