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?