Problem
The director of capital budgeting for Big Sky Health System, Inc. has estimated the following cash flows for a new service and has a cost of capital of 10%. What is the project's MIRR?
Year 0 $(125,000) 1 $75,000 2 $55,000 3 $25,000 Project Cost of Capital 10%
Choice: 12.1%
Choice: 16.9%
Choice: 13.3%
Choice: 9.5%