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Compute the MIRR for Project Y and Accept or Reject

Question 82

Multiple Choice

Compute the MIRR for Project Y and accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 12 percent.
Time: 012345Cash flow:5,0001,0001,00002,0002,000\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:}&-5,000&1,000&1,000&0&2,000&2,000\\\hline\end{array}\end{array}


A) 7.62 percent, accept
B) 7.62 percent, reject
C) 47.09 percent, accept
D) 47.09 percent, reject

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