What is the modified IRR?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Turner Enterprises is analyzing a project that is expected to have annual cash flows of $46,400, $51,300
and -$15,200 for Years 1 to 3, respectively. The initial cash outlay is $65,900 and the discount rate is 12
percent. What is the modified IRR?
O 16.98%
O 17.77%
018.13%
O 17.04%
O 18.66%
Transcribed Image Text:Turner Enterprises is analyzing a project that is expected to have annual cash flows of $46,400, $51,300 and -$15,200 for Years 1 to 3, respectively. The initial cash outlay is $65,900 and the discount rate is 12 percent. What is the modified IRR? O 16.98% O 17.77% 018.13% O 17.04% O 18.66%
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