You have been asked to analyze a capital investment proposal. - 2305

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Request Description

You have been asked to analyze a capital investment proposal. The project’s cost is $2,775,000. Cash inflows are projected to be $925,000 in Year 1; $1,000,000 in Year 2; $1,000,000 in Year 3; $1,000,000 in Year 4; and $1,225,000 in Year 5. Assume that your firm discounts capital projects at 15.5%. What is the project’s MIRR?

A.   16.73%

B.   10.44%

C.   19.99%

D.   12.62%

Solution Description

You have been asked to analyze a capital investment proposal. The project’s cost is $2,775,