Eternals Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering.  The project has a cost of P275,000 and is expected to provide after-tax annual cash flows of P73,306 for eight years.  The firm’s management is uncomfortable with the IRR reinvestment assumption and prefers the modified IRR approach.  You have calculated a cost of capital for the firm of 12%.  What is the project’s MIRR?   15.0% 14.0% 12.0% 16.0%

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Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.