Projected mirr and wacc


Problem:

Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.

WACC: 12.00%
Year 0 1 2 3
Cash flows -$1,000 $450 $450 $450

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Finance Basics: Projected mirr and wacc
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