104:54 12. 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 TRR. However, in reality the reinvested cash flows may not necessarily generate a return equal to the Ira. Thus, the modified Tapproach makes a more reasonable assumption other than the project's 18. Consider the following situation Cute Camel Woodcran Company to analyzing a project that require an initial investment of 450,000. The project's expected cash flows are 9 2 0 B Year Cash Flow Year: 275,000 Year 2 -125,000 500,000 450,000 Cute Camel Woodcraft Company WACC, and the project has esame raka the average proces project's modified intra rate of return (MIR) 361 0 25 22.11 Cute Camel Woodcraft Company's WACC is 9%, and the project has the same risk as the firm's average project. Calculate this project's modified Internal rate of retum (MIRR): 26.15% 29.88% 22.414 24.90% af Cute Camel Woodcraft Company's managers select projects based on the MIRR criterion, they should this independent project. Which of the following statements best describes the difference between the method and the MIRA method The IRR method uses the present value of the initial investment to calculate RA, TE MIRA method uses the terminal value of the initial investment to calculate the MIRA The method assumes that shows are reinvested at a rate of return qual to the The MIRR method assume that how are invested at a rate of return equal to the cost of capital o The TR method oes onyeshow to calculate the R. The Methovet both cash inflows and cash outlow to cute MIRR Save & Antinue Cone withouting