(Answered) Your firm is considering a project that will cost

Finance

Your firm is considering a project that will cost $4.404million upfront, generate cash flows of $3.45million per year for 33years, and then have a cleanup and shutdown cost of $6.03million 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 9.8%.

c. Using the MIRR and a cost of capital of 9.8 %9.8%,would you take the project?

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