Question: you were getting ready to start a new project that will encourage some cleanup and shut down costs when it is completed. The project cost

you were getting ready to start a new project that will encourage some cleanup and shut down costs when it is completed. The project cost at 5.31 million upfront expected to generate 1.15 million per year for 10 years and then have some shut down cost at the end of the 11th year. Use the MIR approach to find the maximum shut down cost you could encourage to meet your cost of capital of 14.8% on this project.

what us the maxium shut down costs to still have a positive NPV?

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