4. Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one cash outflow att- 0 followed by a series of positive cash flows A. A project's MIRR is always greater than its regular IRR. B. A project's MIRR is always less than its regular IRR. C. If a project's IRR is greater than its WACC, then its MIRR will be greater than the IRR. D. To find a project's MIRR, we compound cash inflows at the regular IRR and then find the discount rate that causes the PV of the terminal value to equal the initial cost. E. To find a project's MIRR, the textbook procedure compounds cash inflows at the WACC and then finds the discount rate that causes the PV of the terminal value to equal the initial cost. 5. Malholtra Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: 10.00% 0 $975 2 S320 4 S360 ear Cash flows A. 14.45% B. 12.92% C. 12.57% D. 11.28% E. 11.75% $300 $340