Question
You are getting ready to get a new project that will incur some cleanup and shutdown costs when it is completed. The project will cost
You are getting ready to get a new project that will incur some cleanup and shutdown costs when it is completed. The project will cost $7,662 upfront and is expected to generate $7,315 per year for four years and then have to spend $393.21 shutdown costs in year 5 to close the project. Assume the cost of capital on this project is 16%. What is the MIRR (modified internal rate of return) for this project?
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
132148234, 978-0132148238
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