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The Franchise Corporation is considering an equity investment project with the following future cash flows at a 10% opportunity capital cost. In relation to the

The Franchise Corporation is considering an equity investment project with the following future cash flows at a 10% opportunity capital cost. In relation to the capital budget decision:

Year Cash Flows
0 ($255,000)
1 125,000
2 140,000
3 -50,000
4 100,000

the project must be accepted since MIRR = 10% and NPV = $5,074.45

the project should not be accepted since MIRR = 10% and NPV =$5074.45

the project should be accepted since IRR = 11% and NPV = $260,074.45

the project should not be accepted since IRR = 11% and NPV = $5,074.45

a decision cannot be made because there is a conflict between the different methods used for project evaluation

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