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Your firm is considering a project that will cost $4.557 million up front, generate cash...

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Finance

Your firm is considering a project that will cost $4.557 million up front, generate cash flows of $3.52 million per year for 3 years, and then have a cleanup and shutdown cost of $6.03 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 9.5% .

c. Using the MIRR and a cost of capital of 9.5%, would you take the project?

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