What is the project mirr

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Reference no: EM133075817

The Ulmer Uranium Company is deciding whether or not to 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.

-Should the project be accepted if r = 9%?

Should the project be accepted if r = 16%?

-What is the project's MIRR at r = 9%? Do not round intermediate calculations. Round your answer to two decimal places.

What is the project's MIRR at r = 16%? Do not round intermediate calculations. Round your answer to two decimal places.

Calculate the two NPVs. Do not round intermediate calculations. Round your answers to the nearest cent.

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

Reference no: EM133075817

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