Assume NRG originally forecasted its marketing and support costs at $500,000 per year during three years. Suppose the marketing and support costs could be as low as $200,000 or as high as $900,000 per year. How would these changes impact the NPV of the proposed energy drink project? Recall, NRG pays a 39% tax rate on its pre-tax income. Assume their cost of capital is 9%.

A) Calculate the MIRR (modified internal rate of return)

B) What is the NPV of this project?

C) Explain the purpose of using the MIRR

D) discuss some of the advantages and disadvantages of using the payback method?