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To illustrate, consider the following cash flows:-$60, $155, and -$100. The required return on the project is 20%. What is th

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Answer #1

C0:-60-100/1.2^2
C1=155
C2=0

Modified IRR:

Modified IRR=((155)/(60+100/1.2^2))^(1/1)-1=19.742%

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