Computer Consultants Inc A) 932%
B) 10

question 82

Multiple Choice

Computer Consultants Inc.is considering a project that has the following cash flow and WACC data.What is the project's MIRR? Note that a project's MIRR can be less than the WACC (and even negative) ,in which case it will be rejected. $\begin{array}{lcccc}\text { WACC: } & 10.00 \% \\\text { Year } & 0 & 1 & 2 & 3 \\\text { Cash flows } & -\$ 1,000 & \$ 450 & \$ 450 & \$ 450\end{array}$

• A) 9.32%
• B) 10.35%
• C) 11.50%
• D) 12.78%
• E) 14.20%

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Definitions:

Retrospective Adjustment

A change applied to the accounting records of prior periods to correct an error or implement a change in accounting principle.

Cumulative Effect

The aggregate impact of an accounting change or policy on a company's financial statements over time.

Average Cost

A method for inventory and cost of goods sold valuation, calculated by dividing the total cost by the number of items.

LIFO Method

Last In, First Out method; an inventory valuation technique where the most recently produced items are recorded as sold first.