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Question: The Caffeine Coffee Company uses the modified internal rate of return. The firm has a cost of capital of 12 percent. The project being analyzed is as follows ($34,000 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 $ 18,000

2 15,000

3 12,000

What is the modified internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92789136

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