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Compute the MIRR Statistic for Project X and Note Whether

Question 56

Multiple Choice

Compute the MIRR statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent.
Time: 012345Cash flow:1757501007550\begin{array}{l}\begin{array} {| l | l | l | l | l | l | l |}\hline\text {Time: }&0&1&2&3&4&5\\\hline\text {Cash flow:}&-175&75&0&100&75&50\\\hline\end{array}\end{array}


A) 13.26 percent, accept
B) 13.89 percent, accept
C) 13.26 percent, reject
D) 15.73 percent, accept

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