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An investor is considering a project that will generate $800,000 per year for four years. In addition to upfront costs, at the completion of the
An investor is considering a project that will generate $800,000 per year for four years. In addition to upfront costs, at the completion of the project at the end of the fifth year there will be shut-down costs of $500,000. If the cost of capital is 5%, based on the MIRR, at what upfront costs does this project cease to be worthwhile.
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