A project requires an initial investment of $$120,000.$ There will be no cash flow in the first year. Starting in the second year, the project will generate an annual cash flow of $20,000$ for seven years. After the last $$20,000,$ the project is done. However, $$12,000$ is required to restore the environment in the year after the last $$20,000.$ Assume the required return is $5\%.$ What is the modified IRR of this project? $($Do not round intermediate calculations.$)$Group of answer choices$1\mathrm{.}86\%2\mathrm{.}12\%2\mathrm{.}96\%3\mathrm{.}25\%$