This preview shows page 1. Sign up to view the full content.
Unformatted text preview: t CF 1 CF 2 CF n = (1 + IRR) 1 + (1 + IRR) 2 + . ....+ (1 + IRR) n- IC The IRR is the discount rate that makes the NPV equal to zero. Modified IRR r = WACC COF t CIF t (1 + r) n-t COF t = cash outflows n t = 0 (1 + r) t n = t =1 (1 + MIRR) n...
View Full Document
This note was uploaded on 07/14/2010 for the course UGBA 18195 taught by Professor Johngonzales during the Summer '10 term at University of California, Berkeley.
- Summer '10