could use some help. thanks

ch 10: Assignment - The Basics of Capital Budgeting: Evaluating Cash Flows a Back to Assignment Attempts Keep the Highest/3 8. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR. Consider the following situation: Cold Goose Metal Works Inc. is analyzing a project that requires an initial investment of $3,225,000. The projects expected cash flows ore Year Year 1 Year 2 Cash Flow $275,000 -100,000 450,000 500,000 Year 3 Year 4 6 CS HOWS Cold Goose Metal Works Inc.'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): O 15.06 O -19.914 O 19.775 17.899 this independent project 1 Cold Goose Metal Works Inc.'s managers select projects based on the MIRR. crterion, they should Which of the following statements about the relationship between the IRR and the MERR is correct? O Atypical firm's in will be equal to its MIRR. O A typical form's IRR will be less than its MERE A typical firm's will be greater than its MIRR. Grade it Now Save & Continue