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A company is considering a project with the following cash flows: Time Cash Flow 0 -$100 < < < < < < < negative 1

A company is considering a project with the following cash flows:

Time Cash Flow

0 -$100 <<<<<<< negative

1 $100

2 -$100 <<<<<<< negative

3 $120 At a cost of capital of 10%:

a. What is the NPV?

b. What is the Modified Internal rate of Return?

Should the company accept this project?

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