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Section II: Short answer questions OTR Trucking runs a fleet of long-haul tucks and has recently expanded into the Midwest, where it has decided to

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Section II: Short answer questions OTR Trucking runs a fleet of long-haul tucks and has recently expanded into the Midwest, where it has decided to build a maintenance facility. This project will require and initial cash outlay of $22 Million and will generate annual cash inflows of $5.5 Million per year for Years 1 through 3. In Year 4, the project will provide a net negative cash flow of $6 Million due to anticipated expansion of and repairs to the facility. During Years 5 through 10, the project will provide cash inflows of $3 Million per year. Discount rate is 12%. A. Calculate the project's NPV. is the project a worthwhile investment? (1.2 point) 8. Briefly discuss why you may have more than one IRR for this project. (1.3 point) C Calculate the project's MIRR, is the project a worth while investment based on this measure? (1.5 point)

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