Mooradian Corporation estimates that its weighted average cost of capital is 17.8 percent. The company is considering two mutually exclusive projects whose after-tax cash flows are as follows:

Year Project S CF Project L CF

0 ($3,172) ($4,938)

1 $2,950 $1,552

2 $2,766 $2,468

3 $1,990 $4,409

4 $1,931 $2,035

What is the modified internal rate of return (MIRR) of the project with the highest NPV? Should this project be accepted?

42.11%; Yes

43.11%; Yes

44.11%; No

45.11%; Yes

45.11%; No