What is the mirr and should make the show

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Problem 1: Tom Brady is jealous his wife makes more money than he does even though he has 6 Super Bowl rings. Thus, he starts to think of ways he can make more income. One idea is for him to start a reality show that films him as he pursues his next Super Bowl ring. He wants to save money for his avocado ice cream, so he decides to piggyback off another successful woman and name the show "7 Rings" and use Ariana Grande's song as the theme. To start the show, it would cost Tom $500,000 per year for 4 years starting today. He then thinks he would make $1 million per year for 5 years starting 5 years from today. Finally, 10 years from today he would need to spend $2 million to settle a lawsuit with Ariana since he didn't get permission to use the song. If Tom's discount rate is 6% and he uses this as his reinvestment rate, what is the MIRR and should he make the show?

Reference no: EM132826225

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