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 = 12%?

What is the project's MIRR at r = 8%?
What is the project's MIRR at r = 12%?

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: EM132033878

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