Solo Corp is evaluating a project with the following cash flows:

Year Cash Flow

0 (235,000)

1 65,000

2 65,000

3 65,000

4 65,000

5 65,000

The company uses a weighted average cost of capital of 12.5%

Use the Reinvestment Approach for the MIRR calculation.

Calculate the MIRR using the Reinvestment approach for the project.

What is the MIRR and would you Accept or Reject the Capital Project?

	a.	12.16% and Reject the Project.
	b.	12.16% and Accept the Project
	c.	12.50% and Accept the project.
	d.	12.50% and Reject the Project.