Sharp Inc. is analyzing a project with the following cash flows:

Year Cash Flow

0 -$720,000

1 $350,000

2 -$550,000

3 $660,000

4 $440,000

1. The project has ______________ (conventional or unconventional) cash flows.

2. Sharp's WACC is 7%. Calculate the project's modified internal rate of return (MIRR).

3. Sharp's managers select projects based only the MIRR criterion. Should Sharp's managers accept this independent project? Why or Why Not?