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Your firm is considering a project that will cost $4.615 million up front, generate cash flows of $3.52 million per year for 3 years,
Your firm is considering a project that will cost $4.615 million up front, generate cash flows of $3.52 million per year for 3 years, and then have a cleanup and shutdown cost of $5.98 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 10.5%. c. Using the MIRR and a cost of capital of 10.5%, would you take the project? a. How many IRRS does this project have? The project has IRRS. (Select from the drop-down menu.) b. Calculate a modified IRR for this project assuming a discount and compounding rate of 10.5%. The MIRR for this project is%. (Round to two decimal places.) c. Using the MIRR and a cost of capital of 10.5%, would you take the project? (Select from the drop-down menu.) the project should be taken because the MIRR> 10.5%.
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