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1. Your firm is considering a project that will cost $4.55 million up front, generate cash flows of $3.5 million per year for three years,
1. Your firm is considering a project that will cost $4.55 million up front, generate cash flows of $3.5 million per year for three years, and then have a cleanedup and shutdown cost of $6million in the fourth year.
a. How many IRRs does the project have?
(b). Calculate the MIRR for this project. Assume a discount rate and compounding rate of 10%.
(c). Using the MIRR and cost of capital of 10%, would you take the project?
MIRR doesn't use excel pls
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