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KellyK

Guest

Calculating the MIRR- please help!

Hey!

I struggle with my homework here and I was wondering if anyone of you could help me with this one. I need to calculate the MIRR, but I can't understand which details I have been given and how to use these.

10 million dollars were invested into a project.
Cash Flow in 1st Year: + 6 million dollars
Cash Flow in 2nd Year: - 4 million dollars
Cash Flow in 3rd Year: + 8 million dollars

Calculate MIRR provided that in reinvesting and financing the interest rate is 10%.
This interest rate is also the minimal required rate of return from investments. Using the MIRR calculation, determine whether the project is worth for investing.

Thank you in advance!

iamaditya

Member

From: Planet Mars

Registered: 2016-11-15

Posts: 821

Re: Calculating the MIRR- please help!

What is the meaning of MIRR?

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KellyK

Member

Registered: 2017-04-01

Posts: 4

Re: Calculating the MIRR- please help!

For Clarification:

MIRR - Modified Internal Rate of Return