What is the modified internal rate of return

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Problem 1: Bernstein's proposed project has an initial cost of $128,600 and cash flows of $64,500, $98,300, and -$15,500 for Years 1 to 3 respectively. If all negative cash flows are moved to Time 0 at a discount rate of 10 percent, what is the modified internal rate of return? Explain

a. 9.97%
b. 10.04%
c. 10.00%
d. 9.90%
e. 9.69%

Reference no: EM132790093

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