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MGM Mirage is considering the construction of a casino in Spokane at a cost of $ 4 , 0 0 0 , 0 0 0
MGM Mirage is considering the construction of a casino in Spokane at a cost of $ anticipating cash flows from the casino of $ annually for years. A local casino is on the present site of where MGM would like to build the new casino. Can IRR be used as a decision rule for the casino? Justify your response.
No although project is independent, cash flows are not conventional.
Yes, project is independent and cash flows are conventional.
No although cash flows are conventional, project is not independent.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
