Your boss has estimated the cash flows for a project that the firm has replicated many times with great success. Since you are a new analyst, she wants you to do some calculations using her cash flow estimates. The required rate of return for projects of this risk is $13\%.$

CFO $-$$$300,000$

$=1$$$125000$

CF$2$ $$130,000$

CF$3$ $$150,000$

$=4$$$175000$

CF$5$ $$250,000$

A$.$ Using the cash flows above, calculate the NPV$,$ IRR, MIRR, Payback and PI$.$ Clearly label each answer.

B$.$ Explain why the IRR is so much higher than the MIRR. Given the information in the problem, would you judge the IRR or MIRR to be the most accurate for this particular firm? Explain.