Question
A mining company plans to mine a beach for rutile. To do so will cost $12 million up front and then produce cash flows
A mining company plans to mine a beach for rutile. To do so will cost $12 million up front and then produce cash flows of $5 million per year for five years. At the end of the sixth year the company will incur shut-down and clean-up costs of $4 million. If the cost of capital is 12%, then what is the MIRR for this project?
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Engineering Economic Analysis
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
9th Edition
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