Multiple rates of return, The Ulmer Uranium Company is

Multiple rates of return

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Reference no: EM131460361

Multiple Rates of Return

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.

Plot the project's NPV profile.

Select the correct graph.

The correct graph is -Select-ABCDItem 1 .

Should the project be accepted if r = 9%?

-Select-YesNoItem 2

Should the project be accepted if r = 12%?

-Select-YesNoItem 3

What is the project's MIRR at r = 9%? Round your answer to two decimal places.

What is the project's MIRR at r = 12%? Round your answer to two decimal places.

Calculate the two projects' NPVs. Round your answers to the nearest cent.

Project 1 $

Project 2 $

Does the MIRR method lead to the same accept-reject decision as the NPV method?

Reference no: EM131460361

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