Sheakley Industries is considering expanding its current line of business and has developed the following expected cash flows for the project. Should this project be accepted based on the discounting approach to the modified internal rate of return if the discount rate is 13.4 percent? Why or why not?

Year 0: -385,000; Year 1: 67,500 ; Year 2: 259,700; Year3: 164,500; Year 4: -22,700