Q. Consider the project with the following expected cash flows:
Year Cash flow
0 - $400,000
1 $100,000
2 $120,000
3 $850,000
If the discount rate is 0%, Illustrate what is the project's net present value?
If the discount rate is 2%, illustrate what is the project's net present value?
If the discount rate is 6%, illustrate what is the project's net present value?
If the discount rate is 11%, illustrate what is the project's net present value?
Illustrate what is this project's modified internal rate of return?