35. Cashflow patterns and the modified rate of return calculation Henderson Manufacturing Inc. is analyzing a project with the following projected cash flows: Year Cash Flow -$1,600,000 350,000 550,000 660,000 440,000 This project exhibits cash flows. Henderson's desired unconventional modified internal rate 00%. Given the cash flows expected from the company's new project, compute the project's anticipated . (Hint: Round all dollar amounts to the nearest whole dollar, and your final MIRR value to two decimal places.) 6.08% 6.84% O 7.60% 09.12% Henderson's managers are generally conservative, and select projects based solely on the project's modified internal rate of return (MIRR). Should the company's managers accept this independent project? Yes o No You've just learned that the analyst who assembled the project's projected cash flow information used above didn't know his inflows from his outflows. You've reexamined the source data and determined that the revised annual cash flow information should be: Year 0 i 2 Cash Flow -$1,147,500 300,000 -350,000 420,000 280,000 Again, if Henderson's desired rate of return is 5.00%, then the project's revised modified internal rate of return (MIRR) should be (Hint: Round all dollar amounts to the nearest whole dollar, and your final MIRR value to two decimal places.) If, again, Henderson'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? Yes