A project requires an investment of $3.5 million today and it will generate after-tax cash flows of $0.8 million per year for the next four years. The company’s weighted average cost of capital is 12.4% per year. What is the project’s annual modified internal rate of return?
1) 10.0%
2) 11.0%
3) 12.0%
4) 13.0 %
Please show how this would be worked and what to put in the calculator.