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

Multiple Choice

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? $$\begin{array} { c c } \underline { \text { Year } } & { \text { Cash Flow } } \\\hline 0 & - \$ 375,000 \\1 & 133,500 \\2 & - 35,600 \\3 & 244,700 \\4 & 271,000\end{array}$$

A) Yes; The MIRR is 14.78 percent.
B) Yes; The MIRR is 17.42 percent.
C) No; The MIRR is 12.91 percent.
D) No; The MIRR is 14.78 percent.
E) No; The MIRR is 17.42 percent.