Problem:
Some managers think the expected rate of return on the project will be overstated if they use the IRR method. They think tht intermediate cash flows received from the project can only be reinvested at the firms WACC of 19.0%.
Required:
Question: Calculate the projects MIRR?
a. 24.54%
B. 25.55%
C. 27.57%
D. 26.56%
E. 23.03%
Note: Provide support for your underlying principle.