Your firm is considering a project that will cost $4.55 million up front, generate cash...
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Finance
Your firm is considering a project that will cost $4.55 million up front, generate cash flows of $3,500,000 per year for three years, and then have a cleanup and shutdown cost of $6,000,000 in the fourth year.
How many IRRs does this project have?
Create an NPV profile for this project. (Plot the NPV as a function of the discount ratesee the Appendix.)
Given a cost of capital of 10%, should this project be accepted? Justify your answer.
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