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A project requires an investment of $3.5 million today and it will generate after-tax cash flows of $0.8 million per year for the next four years. The company’s weighted average cost of capital is 12.4% per year. What is the project’s annual modified internal rate of return?

1) 10.0%

2) 11.0%

3) 12.0%

4) 13.0 %

Please show how this would be worked and what to put in the calculator.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92414842

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