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Turnbull Corp. is in the process of constructing a new plant at a cost of $28 million. It expects the project to generate cash flows
Turnbull Corp. is in the process of constructing a new plant at a cost of $28 million. It expects the project to generate cash flows of $14,000,000 $19,000,000, and $27,000,000 over the next three years. The cost of capital is 19 percent. What is the net present value (NPV), internal rate of return (IRR) and modified internal rate of return (MIRR) that Turnbull can earn on this project? Should this firm accept this project based on NPV? (Do not round intermediate computations. Round final answer to the nearest dollar and the nearest percent.) O NPV:-5235,785 IRR: 40% MIRR: 38% Decision making: No NPV: $13,204,064 IRR: 44% MIRR: 38% Decision making: Yes NPV: $13,204,064 IRR: 44% MIRR: 35% Decision making: Yes ONPV: -$235,785 IRR: 40% MIRR: 35% Decision making: No
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