Dry-Sand Company Is Considering Investing in a New Project

question 2

Multiple Choice

Dry-Sand Company is considering investing in a new project. The project will need an initial investment of $1,200,000 and will generate $600,000 (after-tax) cash flows for three years. Calculate the MIRR (modified internal rate of return) for the project if the cost of capital is 15%.

• A) 14.5%
• B) 18.6%
• C) 20.2%
• D) 23.4%

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Definitions:

Paris Peace Conference

An international meeting in 1919 that led to the signing of the Treaty of Versailles, ending World War I and redrawing the map of Europe.

League of Nations

An international organization founded after World War I to promote world peace and cooperation, but was ultimately unable to prevent World War II.

Paris Peace Conference

A meeting of the Allied Powers following the end of World War I, in 1919 in Paris, to set the peace terms for the defeated Central Powers and to redesign the world map.

Peace of Riga

The Peace of Riga, signed in 1921, ended the Polish-Soviet War, with Poland and Soviet Russia dividing the territories of Belarus and Ukraine between them.