What is the Modified Internal Rate of Return of Mazgaon using the reivestment approach if the nterest rate is 7 percent? Year Cash Flows 0 −$27,400   1 10,750   2 21,900   3 9,960   4 −3,800

EBK CFIN
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ISBN:9781337671743
Author:BESLEY
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Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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What is the Modified Internal Rate of Return of Mazgaon using the reivestment approach if the nterest rate is 7 percent?

Year Cash Flows
0 −$27,400  
1 10,750  
2 21,900  
3 9,960  
4 −3,800  
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The Modified internal rate of return can be calculated as follows :

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