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There is an oil drilling project with an original cost of -20,000, subsequent profits of 10,000 (t=1); 15,000 (t=2); and the final environmental clean-up cost
There is an oil drilling project with an original cost of -20,000, subsequent profits of 10,000 (t=1); 15,000 (t=2); and the final environmental clean-up cost of -5,000 (t=3). Its WACC is 7%. Find project's MIRR and decide whether the company should accept or reject the drilling project.
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