Cool Water Drinks Is Considering a Proposed Project with the Following

question 61

Multiple Choice

Cool Water Drinks is considering a proposed project with the following cash flows.Should this project be accepted based on the combined approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 12.6 percent? Why or why not? $$\begin{array} { c r } \text { Year } & \text { Cash Flow } \\0 & - \$ 148,500 \\1 & 32,800 \\2 & 64,200 \\3 & - 7,500 \\4 & 87,300\end{array}$$

• A)Yes; The MIRR is 8.81 percent.
• B)Yes; The MIRR is 9.23 percent.
• C)No; The MIRR is 8.81 percent.
• D)No; The MIRR is 9.06 percent.
• E)No; The MIRR is 9.23 percent.

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Definitions:

Strategic Roles

Specific, critical functions played by individuals or groups within an organization intended to drive the fulfillment of its long-term goals.

Business Partner

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