Question: Question 4 (6 points) Your division is considering two investment projects, each of which requires an up-front expenditure of $50 million. You estimate the cost
Question 4 (6 points) Your division is considering two investment projects, each of which requires an up-front expenditure of $50 million. You estimate the cost of capital to be 8% and that the investment will produce the following after-tax cash flows (in millions of dollars). Year Project A Project B 10 30 2 15 30 3 25 10 4 30 10 1 What is the modified internal rate of return for Project A? 12.69% 14.88% 17.11% 17.95%
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