Drinkable Water Systems is analyzing a project with projecte…
Drinkable Water Systems is analyzing a project with projected cash flows of $127,400, $209,300, and –$46,000 for Years 1 to 3, respectively. The project costs $251,000 and has been assigned a discount rate of 12.5 percent. Should this project be accepted based on the discounting approach to the modified internal rate of return? Why or why not?