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Mass Waste Disposal Inc. is considering the construction of a facility at a cost of $20...

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Finance

Mass Waste Disposal Inc. is considering the construction of afacility at a cost of $20 million. The project will producepositive cash flows of $7 million per year for the next 4 years butthe 5th and final year will have a net negative cash flow of $5million. If the reinvestment rate is 10% and the cost of capital is9%, the MIRR of this project is ________ and the project should be________. (accepted/rejected) Show all work and explain forcredit.

Answer & Explanation Solved by verified expert
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We have following cash flows for the project Cash Flow of Project in million Year 0 1 2 3 4 5 Cash flow 20 7 7 7 7 5 Reinvestment rate 10 Cost of capital 9    See Answer
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