Modified Internal Rate of Return
Not what you're looking for?
The 21st century corporation uses the modified internal rate of return. The firm has a cost of capital of 8 percent. The project being analyzed is as follows ($20,000 investment):
Year Cash Flow
1 $10,000
2 $9,000
3 $6,800
a. What is the modified internal rate of return?
b. Assume the traditional internal rate of return on the investment is 14.9 percent. Explain why your answer to part a would be lower.
Purchase this Solution
Solution Summary
The solution examines modified internal rates of return. The traditional internal rate of return on the investment is determined.
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Introduction to Finance
This quiz test introductory finance topics.