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Exam Code: 6V0-31.24
Exam Name: VMware Tanzu CloudHealth Platform Administrator (AWS) Skills
Vendor: VMware

60 Questions & Answers
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O'Donnell Inc. has a cost of capital of 11.5 percent. The company has a project with the following cash flows:
Year Cash flow
1 235
3 300
What is the project's modified internal rate of return (MIRR)?
A. 32.90%
B. 39.87%
C. 40.15%
D. 28.15%
E. 36.27%
Answer: A
Step 1 Find the PV of the outflows:
CF(0) = -200
CF(1) = 0
CF(2) = -65
I = 11.5
Solve for NPV = -$252.28.
Step 2 Find the TV of the inflows by first finding their NPV and then finding the FV of the NPV:
CF(0) = 0 N = 3
CF(1) = 235 I = 11.5
CF(2) = 0 PV = -427.18
CF(3) = 300 PMT = 0
I = 11.5 Solve for FV = $592.16.
Solve for NPV = $427.18.
Step 3 Calculate the MIRR by equating the PV of the outflows with the TV of the inflows:
N = 3
PV = -252.28
PMT = 0
FV = 592.16
Solve for I = 32.90%.

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