An independent capital budgeting project has a net investment of $4.5 million and is expected to generate net cash flows of $1.5 million annually for 5 years. The required rate of return is 14 percent.

a. Compute the internal rate of return b. Compute the modified internal rate of return c. Should the project be accepted?

A. a. 19.86% b. 17.12% c. Yes

B. a. 17.12% b. 19.86% c. Yes

C. a. 19.86% b. 17.12% c. No

D. a. 17.12% b. 19.86% c. No