Your firm is considering a project that will cost

$4.491

million up front, generate cash flows of

$3.49

million per year for

3

years, and then have a cleanup and shutdown cost of

$6.04

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?

a. How many IRRs does this project have?

The project has

2

IRRs.(Select from the drop-down menu.)b. Calculate a modified IRR for this project assuming a discount and compounding rate of

10.2%.

The MIRR for this project is