Calculate the NPV of the project-IRR and MIRR

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Reference no: EM131068610

The following is a project your firm is considering.

The cost of the project is $1,200,000, which will be an immediate expense. The project is expected to produce cash flows in year 3 (end of Year) of $400,000 and this cash flow will grow at 15% for the following 5 years. At the end of the 6th year a cash outflow of 500,000 is expected (the cost of ending the project). Calculate the NPV of the project, IRR, and MIRR if the required rate of return is 7.00%. Should you firm take the project?

Reference no: EM131068610

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