Wiley's Wire Products Is Considering a Project That Has the Following

question 56

Multiple Choice

Wiley's Wire Products is considering a project that has the following cash flow and cost of capital (r) data.What is the project's MIRR? Note that a project's MIRR can be less than the cost of capital (and even negative) , in which case it will be rejected. $$\begin{array} { l c c c c } & \mathrm { r } = 11.00 \% & & & \\\text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 800 & \$ 350 & \$ 350 & \$ 350\end{array}$$

• A) 8.86%
• B) 9.84%
• C) 10.94%
• D) 12.15%
• E) 13.50%

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Definitions:

Strategy

A plan of action designed to achieve a long-term or overall aim.

Dominate

To have control, power, or authority over something or someone.

Oblige

To bind morally or legally, as by a promise or contract.

Needs

Fundamental or basic requirements necessary for individuals to feel fulfilled, satisfied, and secure, including physical, emotional, social, and psychological aspects.