Wiley's wire products is considering a project that has the following cash flow and wacc data. what is the project's mirr? note that a project's mirr can be less than the wacc (and even negative), in which case it will be rejected. wacc: 11.00% year 0 1 2 3 cash flows -$800 $350 $350 $350 select one:

a. 8.86%
b. 9.84%
c. 10.94%
d. 12.15%
e. 13.50%

e. 13.50%

Explanation:

WACC                11.00%

Year                        0              1                  2                   3  

Cash flows          $800        $350           $350          $350

Compounded-

values, FVs        $431.24     $388.50     $350.00

TV = Sum of compounded inflows: $1,169.74

MIRR = 13.50% Found as discount rate that equates PV of TV to cost, discounted back 3 years @ WACCMIRR= 13.50%.

answer; hazards;