Your firm is considering a project that will cost $4.55 million up front, generate cash flows of $3.5 million per year for three years, and then have a cleaned up and shutdown cost of $6million in the fourth year.
a. how many irrs does the project have?
b. calculate the mirr for this project. assume a discount rate and compounding rate of 10%.
c. using the mirr and cost of capital of 10%, would you take the project?