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A mining company plans to mine a beach for rutile. To do so will cost $15 million up front and then produce cash flows of
A mining company plans to mine a beach for rutile. To do so will cost $15 million up front and then produce cash flows of $8 million per year for five years. At the end of the sixth year the company will incur shutdown and cleanup costs of $7 million. If the cost of capital is 13%, then what is the MIRR for this project? A) -110% B) -70% C) -90% D) -100%
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