Grey Fox Aviation Company is analyzing a project that requires an initial investment of $3,225,000. The projects expected cash flows are:

Year	Cash Flow
Year 1	$300,000
Year 2	200,000
Year 3	400,000
Year 4	425,000

Grey Fox Aviation Companys WACC is 9%, and the project has the same risk as the firms average project. Calculate this projects modified internal rate of return (MIRR):

-22.10%

10.34%

12.28%

15.52%

If Grey Fox Aviation Companys managers select projects based on the MIRR criterion, they should ( accept/reject ) 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 less than its MIRR.

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

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