A project's initial cost is $14,000 and its cash flows over the next 4 years are $5,000, $5,000, $3 rate of return using the combination approach if the required rate of return is 9.95%7 Multiple Choice -15.64% -3.91% 3.31% 99%

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...
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A project's initial cost is $14,000 and its cash flows over the next 4 years are $5,000, $5,000, $3,000 and $2,000. What is the project's modified internal
rate of return using the combination approach if the required rate of return is 9.95%?
Multiple Choice
O 15.64%
-3.91%
3.31%
99%
Transcribed Image Text:A project's initial cost is $14,000 and its cash flows over the next 4 years are $5,000, $5,000, $3,000 and $2,000. What is the project's modified internal rate of return using the combination approach if the required rate of return is 9.95%? Multiple Choice O 15.64% -3.91% 3.31% 99%
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