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Consider the following projects cash flows: Year End-of-year Cash Flow $1,000 -$2,000 $2,000 $1,500 A. What is this projects net present value if the discount

Consider the following projects cash flows:

Year End-of-year Cash Flow

  1. $1,000
  2. -$2,000
  3. $2,000
  4. $1,500

A. What is this projects net present value if the discount rate is 6 percent?

B. What is this projects internal rate of return?

C. What is this projects modified internal rate of return if the reinvestment rate is 5 percent?

D. What is this projects modified internal rate of return if the reinvestment rate is 6 percent?

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