Your firm is considering a project that will cost $4.548 million up front, generate cash flows of $3.50 million per year for 3 years, and then have a cleanup and shutdown cost of $6.00 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 10.0%.

c. Using the MIRR and a cost of capital of 10.0%,

would you take the project?

a. How many IRRs does this project have?

The project has

1

2

3

4

IRRs.(Select from the drop-down menu.)