Question: A firm is considering a project that has an initial cost of $150,000 and is expected to provide operating cash flows of $100,000 for each

A firm is considering a project that has an initial cost of $150,000 and is expected to provide operating cash flows of $100,000 for each of the next two years. The firm's management is uncomfortable with the IRR reinvestment assumption and prefers the modified IRR approach. You have calculated a cost of capital for the firm of 12 percent. What is the project's MIRR?

A) 12.0% B) 18.9% C) 11.3% D) 8.7%

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