Question

In: Finance

Your firm is considering a project that will cost $ 4.548$4.548 million up​ front, generate cash...

Your firm is considering a project that will cost

$ 4.548$4.548

million up​ front, generate cash flows of

$ 3.50$3.50

million per year for

33

​years, and then have a cleanup and shutdown cost of

$ 6.00$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 %10.0%.

c. Using the MIRR and a cost of capital of

10.0 %10.0%​,

would you take the​ project?

a. How many IRRs does this project​ have?

The project has:

▼

1

2

3

4

IRRs.

Solutions

Expert Solution

ANSWER IN THE IMAGE((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

jeff jeffy answered 1 year ago
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