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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
|
The Caffeine Coffee Company uses the modified internal rate of return. The firm has a cost of capital of 12 percent. The project being analyzed is as follows ($34,000 investment): |
| Use Appendix A and Appendix B. |
| Year | Cash flow    | |
| 1 | $ 13,000 Â Â Â | |
| 2 | 12,000 Â Â Â | |
| 3 | 10,000 Â Â Â | |
| Â | ||
| (a) |
What is the modified internal rate of return? An approximation from Appendix B is adequate. (You do not need to interpolate.)Â (Round "FV Factor" to 3 decimal places and final answer to 2 decimal places. Omit the "%" sign in your response.) |
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