Celestial Crane Cosmetics is analyzing a project that requires an initial investment of $550,000. The project's expected cash flows are: Year Year 1 Year 2 Cash Flow $375,000 -100,000 500.000 475,000 Year 3 Year 4 Celestial Crane Cosmetics's WACC Is 104, and the project has the same risks the firm's average project. Calculate this project's modified internal rate of return (HERR): 22.12 2027 25.81% 24.501 Celestial Crane Cosmetics's WACC is 10%, and the project has the same risk as the firm's average project. Calculate this project's modified internal rate of return (MIRR): 22.12% 28.27% 25.81% 24.58% this independent project 11 Celestial Crane Cosmetics's managers select projects based on the MIRR criterion, they should Which of the following statements best describes the difference between the IRR method and the MIRR method? The IRR method assumes that cash flows are reinvested at a rate of return equal to the IRA. The MIRR method assumes that cash flows are reinvested at a rate of return equal to the cost of capital The IRR method uses only cash inflows to calculate the IRR. The MIRR method uses both cash inflows and cash outflows to calculate the MIRR The TRR method uses the present value of the initial investment to calculate the IRR. The MIRR method uses the terminal value of the Initial investment to calculate the MIRR