You are the financial analyst for the Glad Its Finally Over Company. The director of capital budgeting has asked you to analyze a proposed capital investment. The project has a cost of $30,000 and the cost of capital is 10%. The projects expected net cash flows are as follows:

Year Expected Net Cash Flow

0 ($30,000)

1 12,500

2 10,000

3 10,000

4 8,000

What is the projects modified internal rate of return?

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