Wiley's Wire Products Is Considering a Project That Has the Following

question 106

Multiple Choice

Wiley's Wire Products is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR?Note that a project's MIRR can be less than the cost of capital (and even negative) , in which case it will be rejected. $\begin{array}{lcccc}&r=11.00 \%\\\text { Year } & 0 & 1 & 2 & 3 \\ \text { Cash flows } & -\$ 800 & \$ 350 & \$ 350 & \$ 350\end{array}$

• A) 8.86%
• B) 9.84%
• C) 10.94%
• D) 12.15%
• E) 13.50%

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Definitions:

Budgeted Units

An estimated quantity of goods or services that a company plans to sell or produce within a specific period.

Production

The process of creating, manufacturing, or using goods and services.

Units

Basic quantities or measurements in which variables, production, or processes are expressed and analyzed.

February

The second month of the Gregorian calendar, known for having 28 days in common years and 29 days in leap years.