Compute the MIRR Statistic for Project I and Note Whether

question 119

Multiple Choice

Compute the MIRR statistic for Project I and note whether to accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 15 percent.
Project I
$$\begin{array} { l l l l c c c } \text { Time } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash Flow } & - \$ 1,000 & \$ 400 & \$ 300 & \$ 200 & \$ 300 & \$ 50\end{array}$$

• A) The project's MIRR is 10.29 percent and the project should be rejected.
• B) The project's MIRR is 12.67 percent and the project should be rejected.
• C) The project's MIRR is 17.17 percent and the project should be accepted.
• D) The project's MIRR is 18.19 percent and the project should be accepted.

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