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Houston Inc. is considering a project which involves building a new refrigerated warehouse which will cost$7,000,000 at t = 0 and which is expected to have operating cash flows of $500,000 at the end of each of the next 20 years. However, repairs which will cost $1,000,000 must be incurred at the end of the 10th year. Thus, at the end of Year 10 there will be a $500,000 operating cash inflow and an outflow of $1,000,000 for repairs. If Houston's required rate of return is 12 percent, what is the project's MIRR in percent?

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Category:- Financial Management
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