(Calculating MIRR) OTR Trucking Company runs a fleet of long-haul trucks and has recently expanded into the Midwest, where it has decided to build a maintenance facility. This project will require an initial cash outlay of $20 million and will generate annual cash inflows of $4.5 million per year for Years 1 through 3. In Year 4, the project will provide a net negative cash flow of $5 million due to anticipated expansion of and repairs to the facility. During Years 5 through 10, the project will provide cash inflows of $2 million per year.

a. Calculate the project's NPV and IRR where the discount rate is 12

percent. Is the project a worthwhile investment based on these two measures? Why or why not?

b. Calculate the project's MIRR. Is the project a worthwhile investment based on this measure? Why or why not?

Save Homework: HW7 Chapter 11 Score: 0 of 10 pts B11-15 (static) 5 of 74 complete) HW Score: 21.54%, 14 of 65 pts Ousson Help Calculating MRR) OTR Trung Company Info of ong has and any expand whe r e has to barnance o p ere expansion of and repairs to the faculty Dung Years og 10. the project will provide cash rows of m on per year a. Calculate the projects NPV and where the countries 12 percent is the pract a worthwhenvestment based on these two measures? Why or why not? b. Calculate the projects MIRR is the project a worthwe stment based on this measure? Why or why not? a. The projects NPV where the contrate is 12% milion round to two decimal places) Enter your answer in the answer box and then click Check Answer Clear All 4 4 parts remaining