Home & More Is Considering a Project with Cash Flows

question 84

Multiple Choice

Home & More is considering a project with cash flows of-$368,000, $133,500,-$35,600, $244,700, and $258,000 for Years 0 to 4, respectively. Should this project be accepted based on the combination approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 14.6 percent? Why or why not?

• A) Yes; The MIRR is 14.78 percent.
• B) Yes; The MIRR is 16.96 percent.
• C) Yes; The MIRR is 12.91 percent.
• D) No; The MIRR is 14.78 percent.
• E) No; The MIRR is 16.96 percent.

---

Definitions:

Dangling Modifier

A word or phrase that modifies a word not clearly stated in the sentence, often leading to confusion or ambiguity.

Misplaced Modifier

A grammatical error where a modifier (word, phrase, or clause) is placed incorrectly, leading to ambiguity or confusion in a sentence.

Incomplete Construction

A phrase or sentence that lacks necessary components, making it grammatically incorrect or unclear.

Faulty Parallelisms

Errors in the construction of sentences where parts that should be grammatically parallel or balanced are mismatched, leading to awkwardness or confusion.