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What is the modified internal rate of return of this project

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Reference no: EM133011118

Question - 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?

a. 14.35%

b. 10.87%

c. 12.07%

d. 11.57%

Reference no: EM133011118

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