Cold Goose Metal Works Inc. is analyzing a project that requires an initial investment of $2,225,000. The projects expected cash flows are:

Year	Cash Flow
Year 1	$375,000
Year 2	200,000
Year 3	450,000
Year 4	500,000

Cold Goose Metal Works Inc.s WACC is 10%, and the project has the same risk as the firms average project. Calculate this projects modified internal rate of return (MIRR):

33.01%

22.01%

-11.08%

24.76%

If Cold Goose Metal Works Inc.s managers select projects based on the MIRR criterion, they should ___ this independent project.

Which of the following statements about the relationship between the IRR and the MIRR is correct?

A typical firms IRR will be equal to its MIRR.

A typical firms IRR will be less than its MIRR.

A typical firms IRR will be greater than its MIRR.