2. Calculate the expected internal rate of return (IRR) and modified internal rate of return (MIRR)...

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2. Calculate the expected internal rate of return (IRR) and modified internal rate of return (MIRR) on the offshore oil project using both 16 percent and 26 percent as the appropriate cost of capital for the project. Should the $25 million spent on geologic surveys be included in the analysis? Assume for simplicity that all outlays are made immediately and that inflows begin one year from now. 2. Calculate the expected internal rate of return (IRR) and modified internal rate of return (MIRR) on the offshore oil project using both 16 percent and 26 percent as the appropriate cost of capital for the project. Should the $25 million spent on geologic surveys be included in the analysis? Assume for simplicity that all outlays are made immediately and that inflows begin one year from now.

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