Your firm is considering a project that will cost

$ 4.548$4.548

million up front, generate cash flows of

$ 3.50$3.50

million per year for

33

years, and then have a cleanup and shutdown cost of

$ 6.00$6.00

million in the fourth year.

a. How many IRRs does this project have?

b. Calculate a modified IRR for this project assuming a discount and compounding rate of

10.0 %10.0%.

c. Using the MIRR and a cost of capital of

10.0 %10.0%,

would you take the project?

a. How many IRRs does this project have?

The project has:

1

2

3

4

IRRs.