Question: Celestial Crane Cosmetics is analyzing a project that requires an initial investment of $3,225,000. The project's expected cash flows are: YearCash Flow Year 1 $375,000

Celestial Crane Cosmetics is analyzing a project that requires an initial investment of $3,225,000. The project's expected cash flows are:

YearCash Flow

Year 1 $375,000

Year 2: -125,000

Year 3 $500,000

Year 4 $400,000

If the company's WACC is 8% and the project has the same risk as the firm's average project, what is the project's modified internal rate of return (MIRR)?

Should I accept or reject this project?

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