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natural state at a cost of $12 million, payable at the end of Year 2 . a. Plot the project's NPV profile. The correct sketch
natural state at a cost of $12 million, payable at the end of Year 2 . a. Plot the project's NPV profile. The correct sketch is b. Should the project be accepted if WACC =10% ? Should the project be accepted if WACC =20% ? c. Think of some other capital budgeting situations in which negative cash flows during or at the end of the project's life might lead to multiple IRRs. The input in the box below will not be graded, but may be reviewed and considered by your instructor. d. What is the project's MIRR at WACC =10% ? Round your answer to two decimal places. Do not round your intermediate calculations. % What is the project's MIRR at WACC =20% ? Round your answer to two decimal places. Do not round your intermediate calculations. % Does MIRR lead to the same accept/reject decision for this project as the NPV method? Does the MIRR method always lead to the same accept/reject decision as NPV? (Hint: Consider mutually exclusive projects that differ in size.)
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