The Caffeine Coffee Company uses the modified internal rate of return. The firm has a cost of capital of 9 percent. The project being analyzed is as follows ($38,000 investment): Use Appendix A and Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Year Cash Flow
1 $20,000
2 19,000
3 12,000
What is the modified Internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Internal rate of return____%