What is the project modified irr

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Reference no: EM131087826

Project X has a cost of $30,000 at t = 0, and it is expected to produce a uniform cash flow stream for 7 years, i.e., the CF's are the same in Years 1 through 7, and it has a regular IRR of 16 percent. The required rate of return (WACC) for the project is 14 percent. What is the project's modified IRR (MIRR)? The answer is 15% but an explanation would be very helpful.

Reference no: EM131087826

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