Home Décor & More is considering a proposed project with the following cash flows. Should this project be accepted based on the combination approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 16 percent? Why or why not?

A)Yes; The MIRR is 14.78 percent.
B)Yes; The MIRR is 15.64 percent.
C)No; The MIRR is 12.91 percent.
D)No; The MIRR is 14.78 percent.
E)No; The MIRR is 15.64 percent.

Question

Home Décor & More is considering a proposed project with the following cash flows. Should this project be accepted based on the combination approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 16 percent? Why or why not?

A)Yes; The MIRR is 14.78 percent. 
B)Yes; The MIRR is 15.64 percent. 
C)No; The MIRR is 12.91 percent. 
D)No; The MIRR is 14.78 percent. 
E)No; The MIRR is 15.64 percent.

Quizplus · Accepted Answer

The Answer of Home Décor & More is considering a proposed project with the following cash flows. Should this project be accepted based on the combination approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 16 percent? Why or why not?

A)Yes; The MIRR is 14.78 percent. 
B)Yes; The MIRR is 15.64 percent. 
C)No; The MIRR is 12.91 percent. 
D)No; The MIRR is 14.78 percent. 
E)No; The MIRR is 15.64 percent.

Home Décor & More Is Considering a Proposed Project with the Following