Spotify Technology S.A. (SPOT) is considering the purchase of a new record player system that costs $272,550. Assume a required rate of return of 4.17% and the following cash flow schedule:

Year 1- $52,650

Year 2- $45,700

Year 3- $74,080

Year 4- $89,900

Year 5- $67,905

The project modified internal rate of return (MIRR) is closest to

A.

1.57%.

B.

3.16%.

C.

5.46%.

D.

7.73%.