Miller and Sons Is Evaluating a Project with the Following

question 16

Multiple Choice

Miller and Sons is evaluating a project with the following cash flows: $$\begin{array} { | c | r | } \hline \text { Year } & \text { Cash Flow } \\\hline 0 & - \$ 72,000 \\\hline 1 & 29,100 \\\hline 2 & 20,600 \\\hline 3 & 42,500 \\\hline 4 & 24,300 \\\hline 5 & - 9,800 \\\hline\end{array}$$ The company uses a 10 percent interest rate on all of its projects.What is the MIRR of the project using the reinvestment approach? The discounting approach?
The combination approach?

• A)18.54 percent; 17.29 percent; 14.61 percent
• B)13.96 percent; 14.38 percent; 14.61 percent
• C)18.54 percent; 17.29 percent; 13.67 percent
• D)13.96 percent; 17.85 percent; 13.67 percent
• E)18.54 percent; 18.23 percent; 18.61 percent

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