Compute the MIRR Statistic for Project J and Advise Whether

question 70

Multiple Choice

Compute the MIRR statistic for Project J and advise whether to accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent.
Project J

• A)The project's MIRR is 14.77 percent and the project should be accepted.
• B)The project's MIRR is 9.29 percent and the project should be rejected.
• C)The project's MIRR is 13.76 percent and the project should be accepted.
• D)The project's MIRR is 15.31 percent and the project should be accepteD.Using a financial calculator: PV = -1437.75; FV = 2739.11; N = 5; PMT = 0; I = MIRR = 13.76 percent; Accept since MIRR> Cost of capital.