What is the modified internal rate of return

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Polk Products is considering an investment project with the following cash flows:

CASHFLOWYear 0 = -100Year 1 = 90

Year 2 = -20

Year 3 = -40

Year 4 = 30

Year 5 = 80

The company's cost of capital is 10%, and it can get an unlimited amount of capital at that cost. What is the modified internal rate of return (MIRR) for the Project?

Select one:

a. 6.03%

b. 8.54%

c. 15.77%

d. 10.80%

e. 10.00%

 

 

Reference no: EM132731380

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