Manheim Candles is considering a project with the following incremental cash flows. Assume a discount rate of 10%. Year Cash Flow
0 ($20,000)
1 0
2 $30,000
3 $30,000
Calculate the project's MIRR. (Round to the nearest whole percentage.)
A) 31%
B) 47%
C) 53%
D) 61%

Question

Quizplus · Accepted Answer

The MIRR is calculated by finding the future value of positive cash flows at the end of the project and the present value of negative cash flows at the beginning, then solving for the rate that equates these values. Here, the MIRR is approximately 47%.

Manheim Candles Is Considering a Project with the Following Incremental