Calculate the mirr of the project

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Reference no: EM132003758

As the director of Big Sky Corp, you are evaluating two mutually exclusive projects with the following net cash flow:

Year Cash Flow X ($) Cash Flow Y ($)

0 -100,000 -100,000

1 60,000 20,000

2 30,000 20,000

3 30,000 40,000

4 10,000 60,000

5 10,000 -5,000

It was later discovered that the last cash flow for project Y, in year 5 was -$5,000, because of clean-up and disposal cost associated with project Y. The new cash flow schedule for Project Y is as given above. Calculate the MIRR of the project? Assume that the discount rate is 10% and the reinvestment rate is 11%.

11.28%

7.17%

10.98%

9.85%

Reference no: EM132003758

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