What is the modified internal rate of return for the project

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Question 1. What is the net present value of a project with a $40,000 initial investment and expected net cash flows of $15,000, $20,000, and $25,000 in each of the next three years, assuming an appropriate discount rate of 10 percent?

Question a. What is the internal rate of return for the project?

Question b. What is the profitability index for the project?

Question c. What is the payback period for the project?

Question d. What is the modified internal rate of return for the project if the finance rate is 10 percent and the reinvestment rate is 13 percent?

Reference no: EM132496351

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