Combination approach to modified internal rate of return

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A project has projected cash flows of -$148,500, $32,800, $64,200, -$7,500 and $87,300 for years 0 to 4, respectively. Should this project be accepted based on the combination approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 12.6 percent? Why or why not?

A) Yes; The MIRR is 8.81 percent.

B) Yes; The MIRR is 9.23 percent.

C) No; The MIRR is 8.81 percent.

D) No; The MIRR is 9.06 percent.

E) No; The MIRR is 9.23 percent.

Reference no: EM13893184

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