You’ve just learned that the analyst who assembled the project’s projected cash flow information used incorrect data

Finance Nov 23, 2021

You’ve just learned that the analyst who assembled the project’s projected cash flow information used incorrect data. You’ve reexamined the source data and determined that the revised annual cash flow information should be:

Year	Cash Flow
0	-$1,381,250
1	375,000
2	-250,000
3	600,000
4	400,000

Again, if Trent’s desired rate of return is 7.00%, then the project’s revised modified internal rate of return (MIRR) should be

-2.12%,-1.57%,-1.49%, OR -1.33%

(Hint: Round all dollar amounts to the nearest whole dollar, and your final MIRR value to two decimal places.)

If, again, Trent’s managers continue to exhibit their general conservatism and select their investment projects based only on the project’s MIRR, should they accept the project?

No OR Yes