A project has a series of non-normal cash flows that result in a terminal value (TV) of $1,580 in 4 years.If the project's initial costs are $1,000,what is your recommendation regarding this project to management (accept/reject)?
A)accept as the MIRR is 12.12%
B)reject as the MIRR is greater than zero
C)accept as the terminal value is greater than the present value of the costs
D)accept as the MIRR is 22.50%

Question

Quizplus · Accepted Answer

The Modified Internal Rate of Return (MIRR) of 12.12% is a positive return, indicating that the project is expected to generate a return above the cost of capital, making it a viable investment.

A Project Has a Series of Non-Normal Cash Flows That