Answer:
the project's MIRR is 14,20%.
Explanation:
The First Step is to Calculate the Terminal Value at end of year 3.
Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)
= 450 x (1.10) ^ 2 + 450 x (1.10) ^ 1 + 450 x (1.10) ^ 0
= 544.50 + 495.00 + 450.00
= 1,489.50
The Next Step is to Calculate the MIRR using a Financial Calculator :
(1,000) CFj
0 CFj
0 CFj
1,489.50 CFj
Shift IRR/Yr 14,2037 %
Therefore, the MIRR is 14,20%.
