Watts Co. is considering a project that has the following cash flow and cost of capital (r)

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Question:

Watts Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR? Note that a project's MIRR can be less than the cost of capital (and even negative), in which case it will be rejected. r = 10.00%

Year 0 1 2 3 4

Cash flows −$850 $300 $320 $340 $360

a. 14.08%

b. 15.65%

c. 17.21%

d. 18.94%

e. 20.83%