1. You are getting ready to start a new project that will incur some cleanup and shutdown costs when it is completed. The project costs $ 5.36 million up front and is expected to generate $ 1.13 million per year for 10 years and then have some shutdown costs at the end of year 11. Use the MIRR approach to find the maximum shutdown costs you could incur and still meet your cost of capital of 14.9 % on this project. The maximum shutdown costs allowable to still have a positive NPV is

2. You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $ 71 comma 000 immediately. If your cost of capital is 7.5 %, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? The minimum dollar amount is $

3. Your firm is considering a project that will cost $ 4.415 million up front, generate cash flows of $ 3.46 million per year for 3 years, and then have a cleanup and shutdown cost of $ 6.05 million in the fourth year. a. How many IRRs does this project have? b. Calculate a modified IRR for this project assuming a discount and compounding rate of 10.1 %. c. Using the MIRR and a cost of capital of 10.1 %, would you take the project? a. How many IRRs does this project have? The project has 1 2 3 4 IRRs.(Select from the drop-down menu.) b. Calculate a modified IRR for this project assuming a discount and compounding rate of 10.1 %. The MIRR for this project is nothing%. (Round to two decimal places.) c. Using the MIRR and a cost of capital of 10.1 %, would you take the project?(Select from the drop-down menu.) No Yes , the project should be taken because the MIRR greater than 10.1 %.