Taylor Technologies has a target capital structure which is 35 percent debt and 65 percent equity. The equity will be financed with retained earnings. The companys bonds have a yield to maturity of 10 percent. The companys stock has a beta = 1.2. The risk-free rate is 4 percent, the market risk premium is 5 percent, and the tax rate is 40 percent. The company is considering a project with the following cash flows:

Project A

Year Cash Flow

0 -$48,000

1 35,000

2 43,000

3 60,000

4 -40,000

What is the projects modified internal rate of return (MIRR)? Show your calculations.