home / study / business / finance / questions and answers / the caffeine coffee company uses the modified internal ... Your question has been answered! Rate it below. Let us know if you got a helpful answer. Question The Caffeine Coffee Company uses the modified internal rate of return. The firm has a cost of capital of 8 percent. The project being analyzed is as follows ($40,000 investment): Use Appendix A and Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year Cash Flow 1 $ 20,000 2 15,000 3 8,000 a. What is the modified internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return %