Calculate the two projects npvs

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The Ulmer Uranium Company is deciding whether or not it should open a strip mine whose net cost is $4.4 million. Net cash inflows are expected to be $27.7 million, all coming at the end of Year 1. The land must be returned to its natural state at a cost of $25 million, payable at the end of Year 2. Should the project be accepted if r = 8%? Should the project be accepted if r = 14%? What is the project's MIRR at r = 8%? What is the project's MIRR at r = 14%? Calculate the two projects' NPVs. Does the MIRR method lead to the same accept-reject decision as the NPV method? Please show all work, formulas, and calculator inputs if used?

Reference no: EM131881917

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