Calculate the irrs for this project assuming discount

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Reference no: EM131604525

Your firm is considering a project that will cost $4.441 million up front, generate cash flows of $3.47 million per year for 3 years, and then have a cleanup an shutdown cost of $6.05 million in the fourth year.

a. How many IRRs does this project have?

b. Calculate the IRR’s for this project assuming a discount and compounding rate of 10.3%.

c. Using the IRR’s and a cost of capital of 10.3%, would you take the project?

Reference no: EM131604525

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