A project has a series of non-normal cash flows that result in a terminal value (TV) of $1,580 in 4 years.If the project's initial costs are $1,000,what is your recommendation regarding this project to management (accept/reject) ?

A) accept as the MIRR is 12.12%
B) reject as the MIRR is greater than zero
C) accept as the terminal value is greater than the present value of the costs
D) accept as the MIRR is 22.50%

Terminal Value

The value of a business or project beyond the forecast period when future cash flows can be estimated.

Non-Normal Cash Flows

Cash flow patterns that do not fit the standard or expected periodic inflow or outflow of funds, often seen in irregular income streams.

MIRR

The Modified Internal Rate of Return (MIRR) is a financial measure that adjusts the internal rate of return (IRR) formula to account for different cash flow reinvestment rates.