Consider the following situation: Celestial Crane Cosmetics is analyzing a project that requires an initial investment of $500,000. The project's expected cash flows are: Year Cash Flow Year 1 $375,000 Year 2 -150,000 Year 3 400,000 Year 4 500,000 Celestial Crane Cosmetics's WACC is 10%, and the project has the same risk as the firm's average project. calculate this project's modified internal rate of return (MIRR): 22.08% O 26.7396 o 23.24% 19.75% If Celestial Crane Cosmetics's managers select projects based on the MIRR criterion, they should independent project. this Which of the following statements best describes the difference between the IRR method and the MIRR method? O The IRR method assumes that cash flows are reinvested at a rate of return equal to the IRR. The MIRR method O The IRR method uses only cash inflows to calculate the IRR. The MIRR method uses both cash inflows and O The IRR method uses the present value of the initial investment to calculate the IRR. The MIRR method uses assumes that cash flows are reinvested at a rate of return equal to the cost of capital. cash outflows to calculate the MIRR. the terminal value of the initial investment to calculate the MIRR