Your firm is considering a project that will cost $ 4.548 million up front, generate...
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Accounting
Your firm is considering a project that will cost $ 4.548 million up front, generate cash flows of $ 3.50 million per year for 3 years, and then have a cleanup and shutdown cost of $ 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 %.
c. Using the MIRR and a cost of capital of 10.0 %, would you take the project?
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