Assignment: Chapter 09 Capital Budgeting Techniques. 9. Cash flow patterns and the modified internal rate of return calculation Locke Manufacturing inc. is analyzing a project with the following projected eash fows: This project exhibits cash flow. Locke's desired rate of return is 8.00%. Given the cash fows expected from the company's new project, compute the project's anticipated modifed internal rate of return (MIAR). (Hint: Round all dollar amoums to the nearest whole dollar, and your final MikR value to two decimal places.) 6.96% 7.41% 7.85% 8.72% 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? Assignment Chapter 09 Capital Budgeting Techniques Locke's managers are generally conservative, and select projects based solely on the project's modined internal rate of return (MiRR). Should the company's managers accept this independent project? No Yes You've just learned that the analyst who assembled the project's projected cash flow information used incorrect data. You've reexamined the source data and determined that the revised annual cash flow information should be: Again, if Locke's desired rate of return is 8.00%, then the project's revised modified internal rate of return (MIRR) should be ( (Hint Round all dollar amounts to the nearest whole dollar, and your final MIRR value to two decimal places.) If, again, Locke's managers continue to exhibic their general conservatism and select their lavestment projects based only on the project's MIRR, should they accept the project? No Yes