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1. After surpassing other bidders, SENHIM, a construction firm, secured a deal valued at $8,500,000...

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Accounting

image 1. After surpassing other bidders, SENHIM, a construction firm, secured a deal valued at $8,500,000 to develop earthquake simulation devices for KICT (Korean Institute of Civil Engineering and Building Technology) over a span of two years. While KICT usually provides an upfront payment for some deals, for this project, they've decided on two installment payments: $5,500,000 after the initial year and the remaining $3,000,000 upon completion of the second year. The projected expenditure for creating these devices is approximated to be $2,000,000 initially, $3,000,000 in the first year, and $3,200,000 in the subsequent year. Under regular circumstances, such a borderline project wouldn't appeal to SENHIM. However, aiming to position themselves at the forefront of technological advancements in this domain, the leadership believed it was valuable to outbid their rivals. From a financial perspective, how advantageous is it for SENHIM to have outbid others for this endeavor? (a) Determine whether this project is or is not a mixed investment. (b) Compute the true IRR for this investment. Assume MARR =10%. (c) Should SENHIM accept the project

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