4. Modified internal rate of return (MIRR) reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes a more reasonable other than the project's IRR. Consider the following situation: Blue Llama Mining Company is analyzing a project that requires an initial investment of $2,750,000. The project's expected cash flows are: Blue Llama Mining 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): 19.95%17.85%16.80%18.43% If Blue Llama Mining Company's managers select projects based on the MIRR criterion, they should this independent project. Which of the following statements about the relationship between the IRR and the MIRR is correct? A typical firm's IRR will be greater than its MIRR. A typical firm's IRR will be less than its MIRR. A typical firm's IRR will be equal to its MIRR