Company should accept or reject the drilling project

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Reference no: EM132064248

There is an oil drilling project with an original cost of -20,000, subsequent profits of 10,000 (t=1); 15,000 (t=2); and the final environmental clean-up cost of -5,000 (t=3). Its WACC is 7%. Find the project’s MIRR and decide whether the company should accept or reject the drilling project.

Reference no: EM132064248

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