[MIRR) Star Industries owns and operates andis for several municipalities throughout the Midwestern part of the US Statypically contracts with the municipality to provide and services for a period of 20 years. The firm the constructa lined and required by federal law) that has capacity for the years. The 385 milion expenditure required to construct the new and results in negative cashows at the end of years 5, 10, and 15. This change in sign on the stream of cash flows over the 20 year contra period introduce the potential for multiples, Star's management has decided to use the MIRR o evaluate new landill Investment contract. The annual cash into to Star begin in year and extend through year 20 are estimated to 53 3 milion (this does not reflect the cost of constructing the one very five years) Star sesa 94% discount ale to evaluates new projects, so plans to discount of the construction cost every five years back to year in this role before calculating the MRR a. What are the project's NPV and MIRRO b. Is this a good investment opportunity for Star Industries? Why or why not? The project's NPV where the discount to be 34% 5 million (Round to two decimal places) The projects IRR IS D% (Round to two decimal places) The MIRR of the project with a discount rate of 94% [ Round to two decimal places) b. Is this a good investment opportunity for Star Industries? Why or why not? (Select the best choice below) OA. The project is only worthwhile based on the NPV measure because the IRR and the MIRR are less than the discount rate but the NPV is positive OB. Yes, the project is worthwhile based on all of the measures because the IRR and the MIRR are more than the discount rate and the NPV is positive O C. No, the project is not worthwhile based on any of the measures because the IRR and the MIRR are less than the discount rate and the NPV is negative OD. The project is only worthwhile based on the IRR measure because the IRR is greater than the discountle but the MIRR is less than the discount rate and the NPV is negative Click to select your answer(s) [MIRR) Star Industries owns and operates andis for several municipalities throughout the Midwestern part of the US Statypically contracts with the municipality to provide and services for a period of 20 years. The firm the constructa lined and required by federal law) that has capacity for the years. The 385 milion expenditure required to construct the new and results in negative cashows at the end of years 5, 10, and 15. This change in sign on the stream of cash flows over the 20 year contra period introduce the potential for multiples, Star's management has decided to use the MIRR o evaluate new landill Investment contract. The annual cash into to Star begin in year and extend through year 20 are estimated to 53 3 milion (this does not reflect the cost of constructing the one very five years) Star sesa 94% discount ale to evaluates new projects, so plans to discount of the construction cost every five years back to year in this role before calculating the MRR a. What are the project's NPV and MIRRO b. Is this a good investment opportunity for Star Industries? Why or why not? The project's NPV where the discount to be 34% 5 million (Round to two decimal places) The projects IRR IS D% (Round to two decimal places) The MIRR of the project with a discount rate of 94% [ Round to two decimal places) b. Is this a good investment opportunity for Star Industries? Why or why not? (Select the best choice below) OA. The project is only worthwhile based on the NPV measure because the IRR and the MIRR are less than the discount rate but the NPV is positive OB. Yes, the project is worthwhile based on all of the measures because the IRR and the MIRR are more than the discount rate and the NPV is positive O C. No, the project is not worthwhile based on any of the measures because the IRR and the MIRR are less than the discount rate and the NPV is negative OD. The project is only worthwhile based on the IRR measure because the IRR is greater than the discountle but the MIRR is less than the discount rate and the NPV is negative Click to select your answer(s)