You are considering a project for which the required rate of return is 8% return; and which is expected to generate the following periodic Cash Flows:

YRCASH FLOW

0$-1,125,000

1670,000

2850,000

3-310,000

4400,000

A) Using the discounting approach, what is the project's Modified Internal Rate of Return (MIRR)? (6 POINTS)

B) What is primary objection to use of the MIRR decision model? (1 POINT)