Your firm is considering a project that will cost 4441, Ask an Expert

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Your firm is considering a project that will cost $4.441 million up front, generate cash flows of $3.47 million per year for 3 years, and then have a cleanup an shutdown cost of $6.05 million in the fourth year.

a. How many IRRs does this project have?

b. Calculate the IRR’s for this project assuming a discount and compounding rate of 10.3%.

c. Using the IRR’s and a cost of capital of 10.3%, would you take the project?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92413238

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