The tRR evaluation method askumes that cash flows from the project are reinvested at the same rate equal to the tRR. Howaver, in reality the reinvested cash flows may not necessarily generate a retum equal to the tRR. Thus, the modified tRR approach makes a mare reasonabile assumption other than the project's tRR. Consider the following situation: Grey Fox Aviation Company is analyzing a project that requires an initial investment of s2,750,000. The project's expected cash flows are: Grey Fox Aviation Company's WACC is 7%, and the project has the same risk as the firm's average project. Calcuiate this project's modifind internal rate of return (M1RR): 17,49% 17.80% 20.7796 25.140% if Grey Fox Aviation Company's managers select projects based on the MIRR criterion, they should this independent project. Which of the following statements about the relationship between the IRR and the MIRR. Is correct? A typical firm's IRR will be less than its MIRR. A typical firm's IRR will be greater than its MIRR. A typical firm's IRR will be equal to its MIRR