Question: Edelman Engineering is considering including one piece of equipment, an overhead pulley system, in this year's capital budget. The cash outlay for the pulley system is $22,430. The firm's WACC is 12%. What is the project's MIRR. Cash flows for the project are as follows:
|
Year
|
Pulley
|
|
1
|
$7,500
|
|
2
|
$7,500
|
|
3
|
$7,500
|
|
4
|
$7,500
|
|
5
|
$7,500
|