Anderson International Limited is evaluating a project in

Erewhon. The project will create the following cash flows:

Year Cash Flow

0 $862,000

1 303,800

2 219,700

3 320,000

4 288,700

All cash flows will occur in Erewhon and are expressed in dollars. In an

attempt to improve its economy, the Erewhonian government has declared

that all cash flows created by a foreign company are "blocked" and must be

reinvested with the government for one year. The reinvestment rate for these

funds is 4 percent. If Anderson uses a required return of 10 percent on this

project, what are the NPV and IRR of the project? Is the IRR you calculated

the MIRR of the project? Why or why not?