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NEW QUESTION: 1
Simmons Shoes is considering a project with the following cash flows:
TimeProject Cash Flows ($)
0-700
1400
2-200
3600
4500
Simmons' WACC is 10 percent. What is the project's modified internal rate of return (MIRR)?
A. 17.10%
B. 25.28%
C. 18.26%
D. 28.93%
E. 29.52%
Answer: C
Explanation:
Explanation/Reference:
Explanation:
There are three steps to getting an MIRR:
1. Find PV of outflows:
-$700 + -$200/(1.1)