Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows:
Year Cash Flow
0 -$ 468,000
1 183,000
2 208,000
3 223,000
4 201,000
All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 8.5 percent. Anderson uses a 15.5 percent required return on this project.
Required:
(a) What is the NPV of the project? (Round your answer to 2 decimal places, e.g. 32.16.)
(b) What is the IRR of the project? (Do not include the percent sign (%). Round your answer to 2 decimal places, e.g. 32.16.)
(c) Is the IRR you calculated the MIRR of the project?