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35. Cashflow patterns and the modified rate of return calculation Henderson Manufacturing Inc. is analyzing a project with thHendersons managers are generally conservative, and select projects based solely on the projects modified internal rate of

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This Is an example of Conventional cash flow that means the the cash out flow initially and Inflow over the period of time.

B 20 Year Cashflow -1600000 1 350000 550000 660000 4 440000 7.60% MIRR Year برا IM ا ا م Cashflow -1147500 300000 -350000 30

According to Earlier data Yes Project should be accepted

later's data project should be rejected because MIRR is Less than required rate of return.

(Note :- in first table information about the Required rate of return is not visible due to drop down but it is available in second condition and there they have used word "again" that means same 5% rate of return was in question number 1 I have assumed.)

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