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Last Tuesday, Blue Hamster Manufacturing Inc. lost a portion of is planning and undial data when both its main and its backup servers crnched. The company's CFO remembers that the internal rate of return (IRR) of Project Detais 113, but he can't recall how much Blue Harruter originally invested in the project nor the project's not present valon (NPV). However, he found a note that detailed the net cash flows expected to be generated by Project Deltes. They are Year Cash Flow Year 1 $1,800,000 Year 2 39,375.000 Year $3,375,000 Veara 53,375,000 The CFO has asked you to compute Project Delta's initial investment using the information currently available to you. He has offered the following suggestions and observations A project's IRR represents the return the project would generate when its NPV is zero or the discounted value of its cash inflows equals the discounted value of its cash outflows-when the cash flows are discounted using the project's IRR The level of risk exhibited by Project Delta is the same as that exhibited by the company's average project, which means that Project Dettar's niet cash flows can be discounted using Blue Hamster's 9% WACO. and its NPV (rounded to the nearest whole Given the data and hints, Project Delta's initial investment is dollar) A projects IRR will the project's cash inflows increase, and everything else is unaffected Puzzy Button Clothing Company is analyzing a project that requires an initial investment of $450,000. The project's expected cash flows are: Year Year 1 Year 2 Year 3 Cash Flow $275,000 - 175,000 400,000 425,000 Year 4 Furry thutton Clothing Company's WACCI 9, and the project has the same risk as the firm's average project. Calculate this project's modified internal rate of return (MIRR) 19.40 16.56 10 31 If Futry Button Clothing Company's managers select projects based on the MERR Criterion, they should this independent project Which of the following statements best describes the difference between the IRR method and the MIRR Method The method assumes that cash flows aru reinvested at a rate of return equal to the IRR The MERR method assumes that cash flows ure revested at a rate of return equal to the cost of capital The IRR method uses only cash inflows to calculate the IRR. The MERR method uses both cash inflows and cash outflows to calculate the MIRR The IRR method uses the present value of the initial investment to calculate the IRR The MIRR method uses the terminal value of the