10. Cashflow patterns and the modified rate of return calculation Locke Manufacturing Inc. is analyzing a project with the following projected cash nows: Year Cash Flow -$1,324,800 300,000 450,000 546,000 360,000 This project exhibits cash flows. Locke's desired rate of return is 8.00%. Given the cash flows expected from the company's new project, compute the project's anticipated modified internal rate of return (MIRR). (Hint: Round all dollar amounts to the nearest whole dollar, and your final MIRR value to two decimal places.) O 6.99 O 7.43% O 8.744 10.49 Locke's managers are generally conservative, and select projects based solely on the project's modified internal rate of return (MIRR). Should the company's managers accept this independent project? O No Yes You ve just learned that the analyst who assembled the project's projected cash Now information used above didn't know his inflows from his outnows. You've reexamined the source data and determined that the revised annual cash flow information should be: Year Cash Flow -$1,351.250 375,000 -250.000 600.000 400,000 Again, it Locke's desired rate of return is 8.00, then the projects revived modified intemal rate of return (MIRR) should be Round all dollar amounts to the nearest whole dollar, and your final MIRR value to two decimal places.) Hint Itaga Locke's managers continue to exhibit the general conservatism and select their investment projects based only on the project's MIRR, should they cout the project ON