A project requires an investment of $3.5 million today and it will generate after-tax cash flows of $0.8 million per year for the next four years. The companys weighted average cost of capital is 12.4% per year. What is the projects annual modified internal rate of return?

1) 10.0%

2) 11.0%

3) 12.0%

4) 13.0 %

Please show how this would be worked and what to put in the calculator.

Thanks.