Question: A project will cost $95,000 today and there will be an additional cost in year 3 of $15,000. The project will have the following projected

A project will cost $95,000 today and there will be an additional cost in year 3 of $15,000. The project will have the following projected cash flows:

Yr Cash Flow

1 $30,000

2 $50,000

3 $0

4 $50,000

The discount rate is 14%. Calculate the modified internal rate of return. Do you accept or reject? (Must have correct set-up and your answer should be between two consecutive whole percentages.)

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