What is the project modified internal rate of return

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Reference no: EM131563002

General Co. is analyzing a project that requires a initial investment of $2,500,000. The project's expected cash flows are:

Year 1 = $325,000

Year 2 = -125,000

Year 3 = 475,000

Year 4 = 475,000

General Co. WACC is 9%, and the project has the same risk as the firm's average project.

What is the project's modified internal rate of return (MIRR)?

Should General Co. select accept or reject this independent project assuming they select project's based on MIRR criterion?

Reference no: EM131563002

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