Fuzzy Button Clothing Company is analyzing a project that requires an inital investment of $3,225,000. The project's expected cash flows are :

Year	Cash Flow
Year 1	$325,000
Year 2	-100,000
Year 3	475,000
Year 4	500,000

Fuzzy BUtton Clothing Companys WACC is 8%, and the project has the same risk as the firm's average project. Caculte this project's modified internal rate of return (MIRR).

a. 18.01%

b. 21.01%

c. -19.04%

d. 24.01%

If fuzzy button clothing companys managers select projects based on the MIRR criteriod, they should ________ this independent project?

a. accept

b. ejects

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

a. A typical firms IRR will be equal to its MIRR.

b. A typical firms IRR will be less than its MIRR.

c. A typical firms IRR will be greater than its MIRR.