Question: Your firm is considering a project that will cost $ 4.548 million up front, generate cash flows of $ 3.50 million per year for 3

Your firm is considering a project that will cost $ 4.548 million up front, generate cash flows of $ 3.50 million per year for 3 years, and then have a cleanup and shutdown cost of $ 6.00 million in the fourth year.

a. How many IRRs does this project have?

b. Given a cost of capital of 10.0 % should this project be accepted?

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