Considering two mutually exclusive projects

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Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one , $67,000 in year two, $56,000 in year three, and 45,000 in year four. Lithium Inc's required rate of return for these projects is 10%. The modified internal rrate of return for Project B is:

Reference no: EM131189826

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