Question: Show all your work and explain. Given that the cost of capital is 14%: Calculate the modified internal rate of return and the profitability index

Show all your work and explain.

Given that the cost of capital is 14%:

  1. Calculate the modified internal rate of return and the profitability index of the following:

CF0

CF1

CF2

CF3

CF4

-8,000

3,000

4,000

3,000

2,000

Should the project be accepted?

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