alleryStart learning →Outlay Rs 1,000 now; inflows Rs 550 (year 1) and Rs 605 (year 2). With 10% reinvestment, MIRR is
A10%
B15%
C12%
D21%
Answer & Solution
Correct answer: A. 10%
FV of inflows = 550 x 1.1 + 605 = 1,210; (1,210/1,000)^(1/2) - 1 = 10%.
Keep practising Capital Budgeting
Browse all Capital Budgeting questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
R&D managers can use real options valuation to handle uncertainty whenA benefit of NPV for a firm with several projects is that NPVs areNPV accuracy relies heavily on the chosenSensitivity analysis studies how uncertainty in a model's output relates to itsAdjusted present value equals equity-financed NPV plus theA Rs 50,000 cash flow in a year has 60% probability; discount rate 10%. Risk-adjusted PV irNPV is the standard valuation method in which industry?Risk-adjusted NPV multiplies each cash flow by the