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please answer asap (MIRR) Star Industries owns and stands for several municipalities throughout the Midwestern part of the US. Startypically contracts with the municipality to
please answer asap
(MIRR) Star Industries owns and stands for several municipalities throughout the Midwestern part of the US. Startypically contracts with the municipality to provide ancil services for a period of 20 years. The firm the constructs ained and required by federal) that has capacity for five years. The smilion expenditure ruired to construct the new landfill 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 RS, so Star's management has decided to use the MIRR to evaluate new landfil investment contracts. The muscathinfows to Star begin in year 1 and extend through year 20 estimated to equal $39 milion this does not relect the cost of constructing the landfils every five years). Star uses a 9.5% discount rate to evaluates new projects, so plans to discount all the construction cost every five years back to year using this rate before calculating the MRR a What are the project's NPV, IRR and MRR? b. Is this a good investment opportunity for Star Industries? Why or why not? a. The project's NPV where the discount rate is 98% is smilion (Round 19 two decimal places) The project's IRR is % (Round to two decimal pieces) The MIRR of the project with a discount rate of 0.6% 8 % (Round to be decimal places) b. Is this a good investment opportunity for Star Industries? Why or why not? Select the best choice below) Step by Step Solution
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