(Calculating MIRR) OTR Trucking Company runs a fleet of? long-haul trucks and has recently expanded into...

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(Calculating MIRR) OTR Trucking Company runs a fleet of?long-haul trucks and has recently expanded into the? Midwest, whereit has decided to build a maintenance facility. This project willrequire an initial cash outlay of $ 18.5 million and will generateannual cash inflows of ?$4.8 million per year for Years 1 through3. In Year? 4, the project will provide a net negative cash flow of?$5.5 million due to anticipated expansion of and repairs to thefacility. During Years 5 through? 10, the project will provide cashinflows of $ 1.8 million per year. a. Calculate the? project's NPVand IRR where the discount rate is 11.4 percent. Is the project aworthwhile investment based on these two? measures? Why or why?not? b. Calculate the? project's MIRR. Is the project a worthwhileinvestment based on this? measure? Why or why? not?

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The net cash flows areYearInitial costAnnual See Answer

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(Calculating MIRR) OTR Trucking Company runs a fleet of?long-haul trucks and has recently expanded into the? Midwest, whereit has decided to build a maintenance facility. This project willrequire an initial cash outlay of $ 18.5 million and will generateannual cash inflows of ?$4.8 million per year for Years 1 through3. In Year? 4, the project will provide a net negative cash flow of?$5.5 million due to anticipated expansion of and repairs to thefacility. During Years 5 through? 10, the project will provide cashinflows of $ 1.8 million per year. a. Calculate the? project's NPVand IRR where the discount rate is 11.4 percent. Is the project aworthwhile investment based on these two? measures? Why or why?not? b. Calculate the? project's MIRR. Is the project a worthwhileinvestment based on this? measure? Why or why? not?