Calculate net present value-modified internal rate of return

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Reference no: EM131536267

An expansion project being considered by your firm has an initial cost of $2,400,000 and expected net cash flows of $570,000 per year for years 1, 2, and 3, and $680,000 per year for years 4, 5, and 6. Assume that the project will be terminated at the end of the sixth year. Use 11% as the WACC. Calculate the Net Present Value (NPV), the Modified Internal Rate of Return (MIRR), the Profitability Index and the Discounted Payback for this project. Should the project be accepted? Why or why not?

Reference no: EM131536267

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