A semi-conductor company in California will significantly expand her chemical vapor deposition units in their various production sites in south-west of the United States. The cash flow for one phase of the project is shown below.
Given reinvestment rate of 15% per year for excess funds and 11 % per year for borrowing rate for extra funds, with 13 % MARR. determine:
Year
|
Net cash flow
|
0
|
+48000
|
1
|
+20000
|
2
|
-90000
|
3
|
+64000
|
4
|
-10000
|
5
|
-33000
|
a) Determine the number of possible ROR values and why?
b) Calculate the external rate of return (MIRR).
c) Is the project economically viable?