9. Cash flow patterns and the modified internal rate of return calculation Sharp Manufacturing Inc. is analyzing a project with the following projected cash flows: Year Cash Flow 0 1 -$1,324,800 300,000 450,000 2 3 546,000 360,000 4 This project exhibits cash flows conventional Sharp's desired rate Given the cash flows expected from the company's new project, compute the project's anticipated modified internal rate of retur unconventional Round all dollar amounts to the nearest whole dollac, and your final MIAR:value to two decimal places.) 6.70" 8.375 10.04 Sharp'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? No Yes You ve just learned that the analyst who assembled the project's projected cash flow information used incorrect data, You've reexamined the source data and determined that the revised annual cash flow information should be Year 0 Cash Flow -51.147.500 Sharp's desired rate of return is 7.00%. Given the cash flows expected from the company's new project, compute the project's anticipated modified internal rate of return (MIRR). (Hint: Round all dollar amounts to the nearest whole dollar, and your final MIRR value to two decimal places.) 6.70% 07.11% 08.37% O 10.04% Sharp'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? O No Yes Youve just leamed that the analyst who assembled the project's projected cash flow information used incorrect data. You've reexamined the source data and determined that the revised annual cash flow information should be: Year 0 1 Cash Flow -$1,147,500 300,000 -350,000 420,000 280,000 2 3 4 (Hint: Again, if Sharp's desired rate of return is 7.00%, then the project's revised modified internal rate of return (MIRR) should be Round all dollar amounts to the nearest whole dollar and your final MIRR value to two deomal places) 11, again, Sharp'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? NO Yes zor