Question: Hello! please answer all parts to the question clearly please its sometimes hard to understand the experts please thank you! provide the answer TO EACH



You are getting ready to start a new project that will incur some cleanup and shutdown costs when it is completed. The project costs $5.36 million up front and is expected to generate $1.13 million per year for 10 years and then have some shutdown costs at the end of year 11. Use the MIRR approach to find the maximum shutdown costs you could incur and still meet your cost of capital of 14.8% on this project. The maximum shutdown costs allowable to still have a positive NPV is $(Round to the nearest dollar.) Bill Clinton reportedly was paid $9.6 million to write his book My Life. The book took three years to write. In the time he spent writing, Clinton could have been paid to make speeches. Given his popularity, assume that he could earn $8.2 million a year (paid at the end of the year) speaking instead of writing. Assume his cost of capital is 9.8% per year. Assume also that once the book is finished, it is expected to generate royalties of $4.53 million in the first year (paid at the end of the year) and these royalties are expected to decrease at 30% per year in perpetuity. The NPV of the book with the royalty payments is - $2,266,000. How many IRRs are there in this problem? Does the IRR rule work in this case? Use the graph below to determine how many IRRs there are in this problem. 19 7.0- NPV (5 millions) 313- 20 2003- 10 20 30 40 50 60 70 80 Discount Rate (%) How many IRRs are there in this problem? (Select the best choice below.) A. One IRR B. Two IRRS C. Three IRRs D. Four IRRs Does the IRR rule give the right answer in this case? (Select the best choice below.) O A. Yes, because the higher IRR (53.4%) is greater than the cost of capital. B. No, because the IRR is negative. C. No, because there are two IRRs the IRR rule cannot be used. D. Yes, because the NPV is positive
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