Cool Water Drinks is considering a proposed project with the following cash flows.Should this project be accepted based on the combined approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 12.6 percent? Why or why not? $$\begin{array} { c r }
\text { Year } & \text { Cash Flow } \
0 & - \$ 148,500 \
1 & 32,800 \
2 & 64,200 \
3 & - 7,500 \
4 & 87,300
\end{array}$$
A)Yes; The MIRR is 8.81 percent.
B)Yes; The MIRR is 9.23 percent.
C)No; The MIRR is 8.81 percent.
D)No; The MIRR is 9.06 percent.
E)No; The MIRR is 9.23 percent.

Question

Cool Water Drinks is considering a proposed project with the following cash flows.Should this project be accepted based on the combined approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 12.6 percent? Why or why not? $$\begin{array} { c r } 
\text { Year } & \text { Cash Flow } \
0 & - \$ 148,500 \
1 & 32,800 \
2 & 64,200 \
3 & - 7,500 \
4 & 87,300
\end{array}$$
A)Yes; The MIRR is 8.81 percent.
B)Yes; The MIRR is 9.23 percent.
C)No; The MIRR is 8.81 percent.
D)No; The MIRR is 9.06 percent.
E)No; The MIRR is 9.23 percent.

Quizplus · Accepted Answer

The Answer of Cool Water Drinks is considering a proposed project with the following cash flows.Should this project be accepted based on the combined approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 12.6 percent? Why or why not? $$\begin{array} { c r } 
\text { Year } & \text { Cash Flow } \
0 & - \$ 148,500 \
1 & 32,800 \
2 & 64,200 \
3 & - 7,500 \
4 & 87,300
\end{array}$$
A)Yes; The MIRR is 8.81 percent.
B)Yes; The MIRR is 9.23 percent.
C)No; The MIRR is 8.81 percent.
D)No; The MIRR is 9.06 percent.
E)No; The MIRR is 9.23 percent.

Cool Water Drinks Is Considering a Proposed Project with the Following