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Green Submarine has a project with the following cash flows: Year Cash Flows 0 $12,700 1 20,000 2 -8,000 3 10,000 Assume the firm considers

Green Submarine has a project with the following cash flows:

Year Cash Flows

0 $12,700

1 20,000

2 -8,000

3 10,000

Assume the firm considers using the reinvestment approach of modified internal rate of return to make an investment decision. The firms discount rate (Rd) is 12% and the compound rate (Rr) is 10%.

What is the modified internal rate of return of the project in percentage?

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