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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Taylor Technologies has a target capital structure, which is 40 percent debt and 60 percent equity. The equity will be financed with retained earnings. The company’s bonds have a yield to maturity of 10 percent. The company’s stock has a beta = 1.1. The risk-free rate is 6 percent, the market risk premium is 5 percent, and the tax rate is 30 percent. The company is considering a project with the following cash flows:
| Project | Year Cash Flow |
| 0 | ($50,000) |
| 1 | 35,000 |
| 2 | 43,000 |
| 3 | 60,000 |
| 4 | -40,000 |
What is the project’s modified internal rate of return (MIRR)?
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