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Cool Water Drinks is considering a proposed project with the following cash flows. Should this project be accepted based on the combined approach to the

Cool Water Drinks is considering a proposed project with the following cash flows. Should this project be accepted based on the combined approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 12.6 percent? Why or why not?

Year 0 1 2 3 4

CF -148,500 32,800 64,200 -7,500 87,300

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