The Caffeine Coffee Company uses the modified internal rate of return. The firm has a cost of capital of 10 percent. The project being analyzed
The Caffeine Coffee Company uses the modified internal rate of return. The firm has a cost of capital of 10 percent. The project being analyzed is as follows ($25,000 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 | $ 14,000 |
| 2 | 11,000 |
| 3 | 9,000 |
What is the modified internal rate of return?
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Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
