A Project Has a Series of Non-Normal Cash Flows That

question 115

Multiple Choice

A project has a series of non-normal cash flows that result in a terminal value (TV) of $1,580 in 4 years.If the project's initial costs are $1,000,what is your recommendation to management regarding this project (accept/reject) ?

• A)accept as the MIRR is 12.12%
• B)reject as the MIRR is greater than zero
• C)accept as the terminal value is greater than the present value of the costs
• D)accept as the MIRR is 22.50%