6. Cash flow patterns and the modified rate of return calculation Blue Elk Manufacturing is analyzing...

 

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6. Cash flow patterns and the modified rate of return calculation Blue Elk Manufacturing is analyzing a project with the following cash flows Year Cash Flow 0 -$1,436,000 1 $300,000 2 $400,000 $480,000 $320,000 3 4 This project has Blue Elk Manufacturing's WACC is 7.50%. What is this project's modified internal rate of return (MIRR). 7.50% O 3.86% 7.87% O 1.86 % cash flows. Blue Elk Manufacturing's managers select projects based only on the MIRR criterion. Should Blue Elk Manufacturing's managers accept this independent project? Yes O No 6. Cash flow patterns and the modified rate of return calculation Blue Elk Manufacturing is analyzing a project with the following cash flows Year Cash Flow 0 -$1,436,000 1 $300,000 2 $400,000 $480,000 $320,000 3 4 This project has Blue Elk Manufacturing's WACC is 7.50%. What is this project's modified internal rate of return (MIRR). 7.50% O 3.86% 7.87% O 1.86 % cash flows. Blue Elk Manufacturing's managers select projects based only on the MIRR criterion. Should Blue Elk Manufacturing's managers accept this independent project? Yes O No

Answer rating: 100% (QA)

Answer 1 Option B is correct ie Non normal cash flows Non norma... View the full answer