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A capital budgeting project has the following cash flows: Year          Cash Flow 0 ($100) 1 $20 2...

A capital budgeting project has the following cash flows:

Year          Cash Flow

0 ($100)

1 $20

2 $40

3 $60

Assume that the firm's reinvestment rate and the cost of capital are both 10% What is the Modified Internal rate of Return of the project?

a 11.28%
b 8.63%
c 10%
d 7.79%
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