Question: pleassee help me answer this ASAP The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to

pleassee help me answer this ASAP

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 necessarlly generate a retum equal to the IRR. Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR. Consider the following situation: Green Caterpillar Garden Supplies Inc. is analyzing a project that requires an initial investment of $2,225,000. The project's expected cash flows are: Green Caterplliar Garden Supplies Inci's WACC is 10%, and the project has the same risk as the firm's averoge project. Calculate this project's modified internal rate of return (MIRR): 30.18% 11.13% 24.70% 32.93%

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