2. A German company plans to replace the old machine with a new one. The new one machine will cost euros 4 million, the old one cannot be sold. The new machine will be used for 20 years and then it can be sold at 25%. of the purchase price. Every year the company will save 450,000 euros in costs of production, but Maintenance costs will also be higher: 40,000 euros per year. In year 10 must perform special maintenance. carried out that will cost 600,000 euros. The company wants you to calculate the MIRR, taking into account that the recovered funds are They will reinvest in the euro. short-term interest rate, which is 0.5% monthly. For the financing rate external, the company uses the TEMA, which is 7.5% nominal annual, compounded monthly. a) Calculate the MIRR b) Should the company accept this investment or not? Profitability Index (PI

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