Is the IRR calculated the MIRR of the project

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1. NPV and IRR: Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows:

Year  Cash Flow

0 -$750,000

1 205,000

2 265,000

3 346,000

4 220,000

Question 1: All cash flows will occur in Erewhon and are expressed in dollars. IN an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 4 percent. If Anders on uses an 11 percent required return on this project, what are the NPV and IRR of the project? Is the IRR you calculated the MIRR of the project? Why or why not?

Reference no: EM132484307

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