Problem
Investment = $12,747,000.00 (time zero). There are 5 years of net cash inflows that result from this project. The inflows are $3 million dollars, $750,000, $1.5 million, $500,000, and $4,500,00. WACC = 14.00%, and subjectively increase it 4% above the WACC calculated above for this risky project.
What is the project's NPV? IRR? MIRR? It is permissible to use Excel for these calculations. If you use Excel, show your excel result and formula in the appendix. Should the firm undertake this project? Explain.