Multiple Rates of Return
The Ulmer Uranium Company is deciding whether or not to open a strip mine whose net cost is $4.4 million. Net cash inflows are expected to be $27.7 million, all coming at the end of Year 1. The land must be returned to its natural state at a cost of $25 million, payable at the end of Year 2.
A) What is the project's MIRR at r = 9%? Round your answer to two decimal places.
--------- %
What is the project's MIRR at r = 14%? Round your answer to two decimal places.
---------- %
B) Calculate the two projects' NPVs. Round your answers to the nearest cent. Enter your answers in dollars. For ex: 1.2 million should be entered as 1,200,000. Enter negative answers with minus sign.
Project 1 ---------- $
Project 2 ---------- $