Your firm is considering a project that will cost $4.494 million up front, generate cash flows of $3.47 million per year for 3 years, and then have a cleanup and shutdown cost of $5.98 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 10.4%.

c. Using the MIRR and a cost of capital of 10.4%, would you take the project?

a. How many IRRs does this project have?

The project has

1

2

3

4

IRRs.(Select from the drop-down menu.)

b. Calculate a modified IRR for this project assuming a discount and compounding rate of 10.4%. The MIRR for this project is nothing%. (Round to two decimal places.)'

c. Using the MIRR and a cost of capital of 10.4%,

would you take the project?(Select from the drop-down menu.)

Yes/No , the project should be taken because the MIRR>10.4%.