A. Consider the project with the following expected cash flows:
     Year              Cash flow
       0            - $400,000
       1                     $100,000
       2                     $120,000
       3                     $850,000
• If the discount rate is 0%, what is the project's net present value? 
• If the discount rate is 2%, what is the project's net present value? 
• If the discount rate is 6%, what is the project's net present value? 
• If the discount rate is 11%, what is the project's net present value? 
• With a cost of capital of 5%, what is this project's modified internal rate of return? 




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