Problem 11.7: The cash flows for 3 independent projects are
shown below.
a. Calculate the IRR and indicate which projects should be
accepted or rejected.
b. Calculate the MIRR for each project assuming a 12
percent Finance Rate and Reinvest Rate and indicate which
projects should be accepted or rejected.
Year
A
B
C
0
-$75,000.00 -$125,000.00 -$350,000.00
1
$18,000.00 $32,000.00 $150,000.00
2
$20,000.00 $32,000.00 $160,000.00
3
$22,000.00
$32,000.00 $170,000.00
4
$25,000.00
$32,000.00
5
$30,000.00
$32,000.00
a. IRR
Finance Rate
Reinvest Rate
b. MIRR