A project requires an investment of $90,000 today and it is expected to generate after-tax cash flows of $2,500 per month for the next four years. The companys weighted average cost of capital is 10.8% per year. What is the projects annual modified internal rate of return?

Question 1 options:

1)

13.1%

2)

12.7%

3)

11.3%

4)

11.8%

5)

12.2%

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