Your firm is considering a project that will cost

$4.424

million up front, generate cash flows of

$3.45

million per year for

3

years, and then have a cleanup and shutdown cost of

$5.99

million in the fourth year.

a. How many IRRs does this project have?

b. Calculate a modified IRR for this project assuming a discount and compounding rate of

10.2%.

c. Using the MIRR and a cost of capital of

10.2%,

would you take the project?