Blue Llama Mining Company is analyzing a project that requires an initial investment of $2,225,000. The project’s expected cash flows are:

Year	Cash Flow
Year 1	$300,000
Year 2	–125,000
Year 3	475,000
Year 4	450,000

Blue Llama Mining Company’s WACC is 7%, and the project has the same risk as the firm’s average project. Calculate this project’s modified internal rate of return (MIRR):

If Blue Llama Mining Company’s managers select projects based on the MIRR criterion, they should (ACCEPT/REJECT) 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.