The evaluation method sumes that cash flows from the project are reinvested at a rate equal to the project's R. However, in reality, the reinvested cash flow may not necessarily generate a retum equal to the IR. Thus, using the modified IRR approach, you can make a more reasonable estimate of a project rate of return than the project's can Consider the following station: un llama Mining Company is analyzing a project that requires an inital investment of SS50,000. The project's expected cash flow are Clow $350,000 Year 12 Year) 450.000 Cod 11 but toma in Company's WACC is 8%, and the project has the same risk as the firm's eroge project. Cette this project modified internal of reum (MIRR) 72.94% 25.02 17.72 20.5 fue uma Mining Company managers on the IRR o, they should thindendente Which of the fog statements et des the frence between the method and the Red - Yer 3 125,000 450,000 Year Ver 475,000 Wwe Lama Mining Company wACC19, and the project has the same risk as the firm's overage project. Calculate this projects modified Internal art of return (MIR) 25.02 2005 1 lut Loma Mining company managers select projects based on the MIRR erterton, they should this independent project. Which of the following yoursements best describes the difference between the HR method and the Mal method? The Bathod towy can inflows to calculate the TR. The MIRK method we both cash inflows and cash outflows to calculate the 00 MERR D. The method used the present all of the winterventment to calculate the true. The moun method is the terminal value of Initial investment to calculate the MERR The methods that cash flows are invata rate of real to the R. The MERR methodumes that cash flows are ute of equal to the cost of capital