Cute Camel Woodcraft Company is analyzing a project that requires an initial investment of $$400,000.$ The project$$s expected cash flows are:

Year

Cash Flow

Year $1$$$375,000$Year $2150,000$Year $3500,000$Year $4475,000$

Cute Camel Woodcraft Company$$s WACC is $8\%,$ and the project has the same risk as the firm$$s average project. Calculate this project$$s modified internal rate of return $($MIRR$)$:

$29\mathrm{.}52\%$

$31\mathrm{.}00\%$

$26\mathrm{.}57\%$

$35\mathrm{.}42\%$

If Cute Camel Woodcraft Company$$s managers select projects based on the MIRR criterion, they should$$this independent project.