ABC Technologies has a target capital structure which is 40 percent debt and 60 percent equity. The equity will be financed with retained earnings. The companys bonds have a yield to maturity of 10 percent. The companys 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 A

Year Cash Flow

0 -$50,000

1 35,000

2 43,000

3 60,000

4 -40,000

What is the projects modified internal rate of return (MIRR)?

A. 16.46%

B. 17.46%

C. 18.46%

D. 19.52%

E. 20.52%