6. Cash flow patterns and the modified rate of return calculation Blue Elk Manufacturing is analyzing a project with the

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6 Cash Flow Patterns And The Modified Rate Of Return Calculation Blue Elk Manufacturing Is Analyzing A Project With The 1 (58.67 KiB) Viewed 21 times

6. Cash flow patterns and the modified rate of return calculation Blue Elk Manufacturing is analyzing a project with the following cash flows: Year Cash Flow 0 1 2 3 4 This project has -$1,795,000 $375,000 $500,000 $600,000 $400,000 Blue Elk Manufacturing's WACC is 5.50%. What is this project's modified internal rate of return (MIRR). 6.34% 2.50% 1.12% 3.12% No cash flows. Blue Elk Manufacturing's managers select projects based only on the MIRR criterion. Should Blue Elk Manufacturing's managers accept this independent project? Yes