1) Grey fox aviation company's WACC is 8% and the project has the same risk as the firms average project. Calculate this projects modified internal rate of return. Answer choices: -16.22% or 20.30% or 24.81% or 18.04%2) If grey fox aviation company's managers select projects based on the MIRR criterion, they should __ this independent project. Answer choices: accept or reject 3) which of the following statements about the relationship between IRR and MRR is correct? Answer choices: a typical firms IRR will be (greater,less than, or equal to) than its MRR.

CENGAGE MINDTAP Q Search this course Ch 11: Assignment - The Basics of Capital Budgeting 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR. Consider the following situation: Grey Fox Aviation Company is analyzing a project that requires an initial Investment of $2,750,000. The project's expected cash flows are: Year Cash Flow Year 1 $300,000 Year 2 -150,000 Year 3 500,000 Year 4 500,000 Grey Fox Aviation Company's WACC is 8%, and the project has the same risk as the firm's average project. Calculate this project's modified internal rate of return (MIRR) -16.22% 20.30% 24.81% 18.04% Eagle Bank.pdf Show A Cost Acc Hw Ch 7.xIsx Eagle Bank.docx