Question
A mining company plans to mine a beach for rutile. To do so will cost $14 million up front and then produce cash flows of
A mining company plans to mine a beach for rutile. To do so will cost $14 million up front and then produce cash flows of $7 million per year for five years. At the end of the sixth year the company will incur shut-down and clean-up costs of $6 million. If the cost of capital is 13%, then what is the MIRR for this project using the discounting method?
-110%
-90%
-70%
-100%
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
