Mass Company is investing in a giant crane. It is expected to cost $6.8 million in initial investment, and it is expected to generate an end-of-year cash flow of $3.8 million each year for three years. At the end of the fourth year, there will be a $1.8 million disposal cost. Calculate the MIRR for the project if the cost of capital is 12.0 percent.

 

A. 27.1 percent

B. 28.8 percent

C. 20.3 percent

D. 22.8 percent