4. Modified internal rate of return (MIRR) The evaluation methodumes that cash flows from the project are reinvested at the same rate equal to the However, in reality the reinvested cash flows may not necessarily generate a retum equal to the I. Thus, the modified IR proach makes a more reasonable sumption other than the project's TRR Consider the following situation Grey Fox Aviation Company is analyzing a project that requires an initial investment of $3,225,000. The project's expected cash flows Year Years year2 Cash Flow 5300,000 - 150.000 400,000 500.000 D SOFA 6/4/2021 A-Z Grey Fox Aviation Company's WACC is 8%, and the project has the same rok as the Mom's average project. Calculate this project's modified deturnal rate of return (MIRRO: 0 -20.94% 14.21% 17.37% 13.42 this independent project If Grey Fox Aviation Company's managers select projects based on the MIRR criterion, they should Which of the following statements about the relationship between the TRR and the MIRR is correct? A typical firm's IRR will be equal to its MIRR A typical firm's will be greater than its MIRR. A typical firm's IRR will be less than its MERR Grade R How Save & Continue Continue without