The Caffeine Coffee Company uses the modified internal rate of return. The firm has a...
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The Caffeine Coffee Company uses the modified internal rate of return. The firm has a cost of capital of 11%. The project being analyzed is as follows ($26,000 investment) 1 $12,000 2 $11,000 3 $9,000 a. what is the modified internal rate of return? b. assume the traditional internal rate of return on the investment is 17.5$. Explain why your answer in part a would be lower.
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