Find what is modified internal rate of return of project

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Problem 1: DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 9%. What is the modified internal rate of return of this project?

Option 1: 14.35%
Option 2: 10.87%
Option 3: 12.07%
Option 4: 11.57%

Reference no: EM132910575

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