The Franchise Corporation is considering an equity investment project with the following future cash flows at...

The Franchise Corporation is considering an equity investment project with the following future cash flows at a 10% opportunity capital cost. In relation to the capital budget decision:

Year	Cash Flows
0	($255,000)
1	125,000
2	140,000
3	-50,000
4	100,000

the project must be accepted since MIRR = 10% and NPV = $5,074.45

the project should not be accepted since MIRR = 10% and NPV =$5074.45

the project should be accepted since IRR = 11% and NPV = $260,074.45

the project should not be accepted since IRR = 11% and NPV = $5,074.45

a decision cannot be made because there is a conflict between the different methods used for project evaluation

Expert Solution

Calc:

jeff jeffy answered 3 years ago

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