Ch 11: Assignment - The Basics of Capital Budgeting Grey Fox Aviation Company is analyzing a project that requires an initial investment of $600,000. The project's expected cash flows are: Year Cash Flow Year: $350,000 Year 2 -100,000 Year 3 450,000 Year 4 500,000 Grey Fox Aviation Company's WACC is 9%, and the project has the sa rate of return (MIRR): risk as the firm's average project. Calculate this project's modified internal 0 20.539 0 23.610 19.50 17.45 If Grey Fox Aviation Company's managers select projects based on the MERR criterion, they should this independent project Which of the following statements best describes the difference between the IRR method and the MIRR method If Grey Fox Aviation Company's managers select projects based on the MIRR criterion, they should this independent project. accept od Which of the following statements best describes the difference between the IRR method and the The IRR method uses only cash inflows to calculate the IRR. The MIRR method uses both reject bws and cash outflows to calculate the MERR The tre method assumes that cash flows are invested at a rate of return equal to the IRR. The MERR method assumes that cash flows are reinvested at a rate of return equal to the cost of capital The IRR method uses the present value of the initial investment to calculate the IRR. The MIRR method uses the terminal value of the Initial investment to calculate the MIRR