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( MIRR ) Star Industries owns and operates for several municipalities throughout the Midwestern part of the US Star typically contracts with the municipality to

(MIRR) Star Industries owns and operates for several municipalities throughout the Midwestern part of the US Star typically contracts with the municipality to provide services for a of 20 years. The firm then constructs a lined ( required by federal law ) that has capacity for five years The $9 million expenditure required to construct the now results in negative cash the end of years 5,10, and 15. This change in sign on the stream of cash flows over the 20-year contract period introduces the potential for multiple , Star's management has decided to use the evaluate landfill investment contracts. The annual cash inflows to Star begin in year 1 and extend through year 20 estimated to equal $33 milliom (does not reflect the cost of constructing the every years) Star uses a 9.8% discount rate to evaluate new projects , so it plans to discount all the construction costs every five years back to year 0 using this rate before calculating the MIRR. aWhat are the projects NPV IRR, and MIRR ? B. Is this a good investment opportunity for Star Industries ? Why or why not?

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