Fuzzy Button Clothing Company is analyzing a project that requires an initial investment of $2,500,000. The project's expected cash flows are: Fuzzy Button Clothing Company's WACC is 7%, and the project has the same risk as the firm's average project. Calculate this project's modifiec internal rate of return (MIRR): 18.33% 14.86% 18.35% 19.23% If Fuzzy Button Clothing Company's managers select projects based on the MIRR criterion, they should this independent project. If Fuzzy Button Clothing Company's managers select projects based on the MIRR criterion, they should this independent p Which of the following statements about the relationship between the IRR and the MIRR is correct? A typical firm's IRR will be less than its MIRR. A typical firm's IRR will be greater than its MIRR. A typical firm's IRR will be equal to its MIRR. Cute Camel Wooderaft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Sigma's expected future cash flows, To answer this question, Cute Camel's cFo has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash fiows are received eveniy throuphout each vear. Complete the following table and compute the project's conventional poyback period. For full credit, complete the entire table. (Note: Round the conventional payback period to two decimal places. If your answer is negative, be sure to use a minus sign in your answer.) The conventional payback period ignores the time value of money, and this concerns Cute Camel's CFO. He has now asked you to compute Sigma's discounted payback period, assuming the company has a 9% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places. For full credit, complete the entire table. (Note: If your answer is negative, be sure to use a minus sign in your answer.) Which version of a project's payback period should the CFO use when evaluating Project Sigma, given its theoretical superiority? The regular payback period The discounted payback period One theoretical disadvantage of both payback methods-compared to the net present value method-is that they fail to consider the value of the cash fows beyond the point in time equal to the payback period. How much value in this example does the discounted payback period method fail to recognize due to this theoretical deficiency? $3,186,183$1,351,321$4,928,461$1,763,323