Here is the question Ehrmann Data Systems is considering a p
Here is the question
Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project\'s MIRR? Note that a project\'s projected MIRR can be less than the WACC (and even negative), in which case it will be rejected WACC: Year Cash flows 9.00% 0 $1,000 $450 $450 $450 a. 13.84% O b. 13.28% ??. 13.70% O d. 17.29% e. 14.53%Solution
Use MIRR function in Excel
MIRR = 13.84%
| Cash flows | Year |
| (1,000.000) | 0 |
| 450.000 | 1 |
| 450.000 | 2 |
| 450.000 | 3 |
