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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