Home Décor & More Is Considering a Proposed Project with the Following

question 94

Multiple Choice

Home Décor & More is considering a proposed project with the following cash flows. 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 16 percent? Why or why not?

• A)Yes; The MIRR is 14.78 percent.
• B)Yes; The MIRR is 15.64 percent.
• C)No; The MIRR is 12.91 percent.
• D)No; The MIRR is 14.78 percent.
• E)No; The MIRR is 15.64 percent.

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Definitions:

Deontological

Pertaining to an ethical theory that suggests the morality of an action should be based on whether the action itself is right or wrong under a series of rules, rather than based on the consequences of the action.

Utilitarian

Pertaining to the ethical theory that the best action is the one that maximizes utility, generally defined as that which produces the greatest well-being of the greatest number of people.

Amoral

Lacking a moral sense; unconcerned with the rightness or wrongness of something.

Autonomous

Having the freedom to act independently, making decisions and actions based on one's own authority and principles.