Question: Hi I have issues with the below problem Drinkable Water Systems is analyzing a project with projected cash inflows of $127,400, $209,300, and -$46,000 for
Hi I have issues with the below problem
Drinkable Water Systems is analyzing a project with projected cash inflows of $127,400,
$209,300, and -$46,000 for Years 1 to 3, respectively. The project costs $251,000 and has been
assigned a discount rate of 12.5 percent. Should this project be accepted based on the discounting
approach to the modified internal rate of return? Why or why not?
A) Yes; The MIRR is 11.85 percent.
B) No; The MIRR is 11.33 percent.
C) Yes; The MIRR is 11.33 percent.
D) No; The MIRR is 11.68 percent.
E) No; The MIRR is 11.85 percent.
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