Izmir Estate is evaluating a new project. The initial investment required is $87,619,003.65 and the cost of capital is 6%. Expected cash flows over the next four years are given below: Years Cash Flow ($) 1 13,400,000 2 50,000,000 3 49,340,400 4 10,000,000 What is the MIRR of the project? 12.0% 10.5% 10.2% O 11.3% 12.1%

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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Izmir Estate is evaluating a new project. The initial investment required is $87,619,003.65 and the cost of capital is 6%.
Expected cash flows over the next four years are given below:
Years
Cash Flow ($)
1
13,400,000
2
50,000,000
3
49,340,400
4
10,000,000
What is the MIRR of the project?
O 12.0%
O 10.5%
O 10.2%
O 11.3%
12.1%
Transcribed Image Text:Izmir Estate is evaluating a new project. The initial investment required is $87,619,003.65 and the cost of capital is 6%. Expected cash flows over the next four years are given below: Years Cash Flow ($) 1 13,400,000 2 50,000,000 3 49,340,400 4 10,000,000 What is the MIRR of the project? O 12.0% O 10.5% O 10.2% O 11.3% 12.1%
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