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ABC Inc. is considering a project with following cash flow. Cash flow in parentheses denote negative flows: Year Cash Flow (200,000) 120,000 120,000 ? 120,000

ABC Inc. is considering a project with following cash flow. Cash flow in parentheses denote negative flows:

Year Cash Flow

  1. (200,000)
  2. 120,000
  3. 120,000
  4. ?
  5. 120,000

K is 10 percent.The projects modified internal rate of return (MIRR) is 16.38%.

  1. What is the expected cash flow in year 3?
  2. What is NPV of proeject?

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