Question
A project costs $22,900 to initiate. It is expected to provide cash flows of $15,900 in Year 1 and $9,900 in Year 2. In Year
A project costs $22,900 to initiate. It is expected to provide cash flows of $15,900 in Year 1 and $9,900 in Year 2. In Year 3, it will cost the firm $5,500 to end the project. What is the modified IRR at a discount rate of 14 percent?
-6.79%
-6.67%
10.63%
11.08%
14.00%
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
