Question: Down Under Stores is considering an investment with an initial cost of $236,000. In Year 4, the project will require an additional investment and finally,

Down Under Stores is considering an investment with an initial cost of $236,000. In Year 4, the project will require an additional investment and finally, the project will be shut down in Year 7. The annual cash flows for Years 1 to 7, respectively, are projected as $60,000, $88,000, $90,000, $27,000, $120,000, $150,000, and $40,000. If the discounting approach is used (brining negative cashflows to time zero) applying a discount rate of 13 percent, what is the project's modified IRR (MIRR)?

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