8. Cash flow patterns and the modified rate of return calculation Happy Frog Inc. is analyzing a project with the following cash flows: Year Cash Flow 0 1 2 -$1,436,000 $300,000 $400,000 $480,000 $320,000 3 4 This project has cash flows Happy Frog Inc.'s WACC Is 7.50%. What is this project's modified Internal rate of return (MIRR). 7.87% 5.86% 2.86% 3.86% Happy Frog Inc.'s managers select projects based only on the MIRR criterion. Should Happy Frog Inc.'s managers accept this independent project? Yes NO