Galindo Recovery is considering an expansion project with cash flows of −$287,500, $107,500, $196,100, $104,500, and −$92,700 for Years 0 through 4, respectively.

Should the firm proceed with the expansion based on the discounting approach to the modified internal rate of return if the discount rate is 13.4 percent? Why or why not?

Answer rating: 100% (QA)

To determine whether Galindo Recovery should proceed with the expansion project we need to calculate ... View the full answer