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5. (20 points) The Bower and Brown Corporation (BBC) makes aluminum castings in its high-pressure aluminum casting plant in Memphis. BBC has a pending contract

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5. (20 points) The Bower and Brown Corporation (BBC) makes aluminum castings in its high-pressure aluminum casting plant in Memphis. BBC has a pending contract to produce aluminum engine block casings for a customer. BBC has a WACC of 14 percent, and the following cash flows after taxes (CFAT) (000) are projected. 0 I -6,000 1 I 2,000 2 1 2,000 3 I 2,000 1 2,000 5 I 2,000 What are the NPV, IRR and Modified Internal Rate of Return (MIRR) for this project? Is this a financially viable contract? NPV=$ IRR- MIRR$

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