The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the tRe. However, in really the reinvested cash flows may not necessarily generate a return equal to the InR. Thus, the modfied irs approach makes a more reasonable assumption other than the project's IRR. Conslder the following situation: Cold Goose Mrtal Works the, is analyzing a project that requires an initial investment of $450,000. The projects expected cash flows are: Cold Goose Metal Works Inc.'s WACC is 896 , and the prolect has the same risk as the firm's average project. Calculate this project's modified internal rate of return (MIRR): 19.07% 22.43% 70.19% 26.92% If Cold Goose Metal Works incis managers select projects based on the MIRR citerion, they should this independent profect. Which of the following statements bent describes the difference between the trR method and the MrRR method? The IRR method assurnis that cash flows are reinvested at a rate of retum equal to the ing. The MiRit method assumes that cash flows are reinvested at a rate of retum equal to the cost of capital. The irR method uses only cash inflows to calculate the iRR. The Mier method uses both cash inflows and castr outfows to calculate the. The tas method uses the present value of the inidat livestment to calculate the tRR. The Ming method uses the teminal value of the Initial investment to coloulate the Ming. The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the tRe. However, in really the reinvested cash flows may not necessarily generate a return equal to the InR. Thus, the modfied irs approach makes a more reasonable assumption other than the project's IRR. Conslder the following situation: Cold Goose Mrtal Works the, is analyzing a project that requires an initial investment of $450,000. The projects expected cash flows are: Cold Goose Metal Works Inc.'s WACC is 896 , and the prolect has the same risk as the firm's average project. Calculate this project's modified internal rate of return (MIRR): 19.07% 22.43% 70.19% 26.92% If Cold Goose Metal Works incis managers select projects based on the MIRR citerion, they should this independent profect. Which of the following statements bent describes the difference between the trR method and the MrRR method? The IRR method assurnis that cash flows are reinvested at a rate of retum equal to the ing. The MiRit method assumes that cash flows are reinvested at a rate of retum equal to the cost of capital. The irR method uses only cash inflows to calculate the iRR. The Mier method uses both cash inflows and castr outfows to calculate the. The tas method uses the present value of the inidat livestment to calculate the tRR. The Ming method uses the teminal value of the Initial investment to coloulate the Ming