FM11 7 - solve for IRR = 14.99 ≈ 15 MIRR PV Costs =...

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Project B: Using a financial calculator, enter the following: CF 0 = -15000000 CF 1 = 20000000 CF 2 = 10000000 CF 3 = 6000000 I = 10; NPV = $15,954,170. Change I = 10 to I = 5; NPV = $18,300,939. Change I = 5 to I = 15; NPV = $13,897,838. 11-8 Truck: NPV = -$17,100 + $5,100(PVIFA 14%,5 ) = -$17,100 + $5,100(3.4331) = -$17,100 + $17,509 = $409. (Accept) Financial calculator: Input the appropriate cash flows into the cash flow register, input I = 14, and then solve for NPV = $409. Financial calculator: Input the appropriate cash flows into the cash flow register and then
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Unformatted text preview: solve for IRR = 14.99% ≈ 15%. MIRR: PV Costs = $17,100. FV Inflows: PV FV 0 1 2 3 4 5 | | | | | | 14% 5,100 5,100 5,100 5,100 5,100 5,814 6,628 7,556 8,614 17,100 MIRR = 14.54% (Accept) 33,712 Financial calculator: Obtain the FVA by inputting N = 5, I = 14, PV = 0, PMT = 5100, and then solve for FV = $33,712. The MIRR can be obtained by inputting N = 5, PV = -17100, PMT = 0, FV = 33712, and then solving for I = 14.54%. Answers and Solutions: 11 - 7...
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