The IRR evaluation method assumes that cash flows from the projert are reirnested at the same rate nqual to the IRR. However, in reality the reinyested cash flows may not necessarily generate a return equal to the 1RR. Thuf, the modified IRR approach makes a more reasonable assumption other than the project's 1RR. Consider the following situation: Green Caterpiliar Garden Supplies. Inc. is analyaing a project that requires an initial investment of $2,500,000, The project's expected cash flows are: Green Caterpillar Garden Supplies Inc.'s WACC is 10%, and the project has the same risk as the firm's average project. Calculate this project's modifed internal rate of retum (MIRR): 26.64% 14.46% 21.80% Green Caterpillar Garden Supplies Inci's WACC is 10%, and the project has the same risk as the firm's aversge project. Caiculate this project's modified internal rate of retum (MIRR): 21.80% 19.38% Green Caterpillar Garden Supplies Incis managers select projects based on the MIRR criterion, they should this independent ps hich of the following statements about the relationship between the IRR and the MIRR is correct? A typical firm's IRR will be equal to its MIRR. A typical firm's IRR will be less than its MIRR. A typical firm's IRR will be greater than its MIRR