Question: The following table gives the available projects (in PHP millions) for a firm. Dry-Sand Company is considering investing in a new project. The project will

The following table gives the available projects (in PHP millions) for a firm.

Dry-Sand Company is considering investing in a new project. The project will need an initial investment of P1,200,000 and will generate P600,000 (after-tax) cash flows for three years. However, at the end of the fourth year, the project will generate -P500,000 of after-tax cash flow due to dismantling costs. Calculate the MIRR (modified internal rate of return) for the project if the cost of capital is 15 percent.The reinvestment rate is 12 percent.

Group of answer choices

A.11.5 percent

B.12.6 percent

C.28.2 percent

D.20.4 percent

The firm has only P20 million to invest. What is the maximum NPV that the company can obtain?

Group of answer choices

3.5

4.5

4.0

5.0

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