Miller and Sons Is Evaluating a Project with the Following

Multiple Choice

Miller and Sons is evaluating a project with the following cash flows: $$\begin{array} { | c | r | } \hline \text { Year } & \text { Cash Flow } \\\hline 0 & - \$ 72,000 \\\hline 1 & 29,100 \\\hline 2 & 20,600 \\\hline 3 & 42,500 \\\hline 4 & 24,300 \\\hline 5 & - 9,800 \\\hline\end{array}$$ The company uses a 10 percent interest rate on all of its projects.What is the MIRR of the project using the reinvestment approach? The discounting approach?
The combination approach?

A) 18.54 percent; 17.29 percent; 14.61 percent
B) 13.96 percent; 14.38 percent; 14.61 percent
C) 18.54 percent; 17.29 percent; 13.67 percent
D) 13.96 percent; 17.85 percent; 13.67 percent
E) 18.54 percent; 18.23 percent; 18.61 percent