TheIRR evaluation method assumes that cash fowsfrom the project are reinvested atthe same rate equal tothe ity the reinvested cash flows may not necessarily generate a return equal to the IRR Thus, the modified IRR pproach makes a more reasonable assumption other than the pmjed's IRR. Consider the following situation Green Caterpilar Ganden Supplies nc. is analyzing a pmjed that requires an initial in vestment of $3,000,000. The pected cash fows are: Cash Flow $325,000 Year 3 500,000 Green Caterpillar Ganden Supplies 's WACC is 10%, and the projed has the same risk as the firm's average projet. Calaulate this project's modified internal rate of retum (MIRR) O 25.4 O 17.80% O 21.025s If Green Caterpillar Garden supplies Inc.'s managers select projects based on the NIRR criterion, they should this independent pnjet. which of the following statements about the relationship between the IRR and the NIRR is correct? O A typicalfirm's IRR wil be greater than its NIRR. O A typical firm's RR will be equal to its NIRR O A typical firm's IRR will be lessthan its MIRR