Hindelang Inc.is considering a project that has the following cash flow and WACC data.What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative) ,in which case it will be rejected. $\begin{array}{lccccc}\text{ WACC: }& 10.00\%& & & & \\ \text{ Year: }& 0& 1& 2& 3& 4\\ \text{ Cash flows: }& -\$900& \$300& \$320& \$340& \$360\end{array}$

A) 12.61%
B) 14.01%
C) 15.41%
D) 16.95%

WACC

Weighted Average Cost of Capital; the average rate of return a company must pay its security holders to finance its assets.

MIRR

The Modified Internal Rate of Return, a financial metric that measures the profitability of an investment while considering the cost of borrowing and reinvestment of cash flows.

Projected MIRR

Projected MIRR refers to the estimated modified internal rate of return, a comprehensive measure of an investment’s attractiveness, adjusting for the cost of capital and cash flow reinvestment rates.