Corbett and Sullivan Enterprises (CSE)use the Modified Internal Rate of Return

question 83

Multiple Choice

Corbett and Sullivan Enterprises (CSE) use the Modified Internal Rate of Return (MIRR) when evaluating projects.CSE's cost of capital is 9.5%.What is the MIRR of a project if the initial costs are $10,200,000 and the project lasts seven years,with each year producing the same after-tax cash inflows of $1,900,000?

• A)About 7.95%
• B)About 8.01%
• C)About 8.24%
• D)About 8.88%

---

Definitions:

60-degree Angle

An angle measuring 60 degrees, often associated with equilateral triangles where all three interior angles are equal.

Productive Cough

A cough that expels mucus or phlegm from the respiratory tract, assisting in clearing the airways.

Short of Breath

The sensation of struggling to breathe or draw deep breaths, often indicative of respiratory conditions, cardiac issues, or exertion.

Health History

A record detailing an individual's past medical conditions, treatments, surgeries, and family medical history, used for assessment or treatment.