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ABC Ltd.'s cost of capital is 9.5% and the company uses the modified internal rate of return for the evaluation of expansion products. The most

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ABC Ltd.'s cost of capital is 9.5% and the company uses the modified internal rate of return for the evaluation of expansion products. The most recent for project for evaluation will last for 7 years and has a constant stream of annual after-tax cash flows of $1,900,000. The capital outlay required for the project is $10,200,000. What would be this project's modified internal rate of return? (7 marks)

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