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A company is in the process of constructing new plant at a cost of $35 million. It expects the project to generate cash flows of
A company is in the process of constructing new plant at a cost of $35 million. It expects the project to generate cash flows of $10 million, $20 million, and $25 million over the next three years. The cost of capital is 25%. What is the Modified Internal Rate of Return (MIRR) on this project and should this project be accepted?
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