Author Question: Edelman Electric Systems is considering a project that has the following cash flow and WACC data. ... (Read 72 times)

jacob816 · **on:** Aug 7, 2023

Question 1

Choi Computer Systems is considering a project that has the following cash flow data. What is the project’s IRR?

Year:	0	1	2	3
Cash flows:	–$1,000	$460	$480	$500

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19.89%

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20.38%

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21.15%

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22.65%

Question 2

Edelman Electric 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:	10%
Year:	0	1	2	3
Cash flows:	–$900	$450	$450	$450

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16.58%

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17.64%

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18.29%

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19.14%

jacquelyngibson · **Reply #1 on:** Aug 7, 2023

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