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Question 2 (5 points) Two parts to this question: Jupiter Corporation is considering an investment that will cost $300,000 and last for three years. The
Question 2 (5 points) Two parts to this question: Jupiter Corporation is considering an investment that will cost $300,000 and last for three years. The investment will be amortized on a straight-line basis over that period. Free cash flow for the project are as follows: Year 1 Year 2 Year 3 $130,000 $145,500 $230,000 Assuming a hurdle rate of 21% for projects of similar risk and a risk-free rate of 2.0%, calculate the Internal Rate of Return and Modified Internal Rate of Return for the project. (Always give your answer in percent to two decimals places.) Instead of using 21.0% as your discount factor, assume you will re-invest the cash flows at 27.944%. What is your result
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