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Using this timeline and example: MIRR for a More Realistic Plant Upgrade where the WACC = 9%/year Timeline ($ in Millions) Years: Y0: -100 Y1:
Using this timeline and example:
MIRR for a More Realistic Plant Upgrade where the WACC = 9%/year
Timeline ($ in Millions)
Years:
Y0: -100
Y1: +35
Y2: -50 +30
Y3: +45
Y4: +40
Y5: +35
PV of Costs = 142.1; FV of Returns = 220.4; MIRR = (220.4 142.1)^.2 1 = (1.551)^.2 1 = 1.0918 1 = 9.18%
Using the above information:
Calculate the NPV for the more realistic plant upgrade on the prior slide assuming the WACC is 9%/year & show all your calculations
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