(MIRR) Star Industries owns and operates landfills for several municipalities throughout the Midwestern part of the US Startypically contracts with the municipally to provide and sendices for a period of 20 years. The then constructs a lined and required by federal law) that has capacity for five years. The $10 milion expenditure required to construct the new land results in negative cash Bows at the end of years 5. 10. und 15. This change in si on the stream of cash flows over the 20 year contract period introduces the potential for multiple RS, Star's management has decided to use the MRR to ale new and Investment contracts The anal cash low to Star begin in year 1 and coded through year 20 are estimated to equal 3 million this does not affect the cost of constructing the land every five years) Stare a 10% discount rate to vas new projects, so it plans to discount all the construction costs every five years back to year using this rate before calculating the MRR a. What are the project's NPV, IRR and MIRR? b. Is this a good investment opportunity for Star Industries? Why or why not? a. The project's NPV where the discount rate is 10% milion (Round to two decimal places) The projects IRR IS [ (Round to two decimal places) The MIRR of the project with a discount rate of 10% is I (Round to two decimal place) b. Is this a good investment opportunity for Star Industries? Why or why not? (Select the best choice below) OA. 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 OB. The project is only worthwhile based on the NPV measure because the IR and the MIRR than the discount rate but the NPV is positive OC. The project is only worthwhile based on the IRR measure because the IRR is greater than the discount rate, but the MRR is less than the discount rate and the NPV is nie OD. No, the project is not worthwhile based on any of the measures because the IRR and the MIRR e less than the discount rate and the NPV is negative I Cack to select your answers) Start a search O 11 9:10 PM 6/2/2 . BE (MIRR) Star Industries owns and operates and is for several municipalities throughout the Midwestem part of the US Stortypically contacts with the municipality to provide and services for a period of 20 years. The firm then constructs a lined and required by federal law) that has capacity for five years. The $10 milion expenditure required to construct the new and results in negative cash flows at 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 IRR - Star's management has decided to use the MIRR to evaluate new landfilment contracts The annual cash flows to Star begin in year 1 and end through year 20 arestimated to equal 3 million (this does not reflect the cost of constructing the landfills every five years) Star uses a 10% discount rate to sve is new projects, so it plans to discount all the construction cost every five years back to your using this rate before calculating the MIRR .. What are the project's NPV IRR and MIRR? h. Is this a good investment opportunity for Star Industries? Why or why not? The project's NPV where the discount rate is 10% million (Round to two decimal places The projects IRR IS O Round to two decimal places) The MIRR of the project with a discount cate of 10% is (% Round to two decimal places) b. Is this a good investment opportunity for Star Industries? Why or why not? (Select the best choice below) O A Yes, the project is worthwhile based on all of the measures because the and the MIRR are more than the discount rate and the NPV is positive OB. 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 OC. The project is only worthwhile based on the IRR measure because the IRR is greater than the discount but MAR is less than the discount rate and the NPV is negative OD. No, the project is not worthwhile based on any of the measures because the IRR and the IRR less than the discount rate and the NPV is negative