What is the project mirr and should start

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Reference no: EM132911128

Dr. Fauci is worried about his job. Once the pandemic is over, he won't get the same media exposure and starts thinking about how he can make more money. Thus, he thinks of starting a new set of bars that literally injects drinks into customers. His first shot will be a mixture of:

Clorox
Orange Juice
Vodka
Ice
Dry vermouth

Problem 1:
Aka the COVID shot. To start the chain of bars, Dr. Fauci will need to invest $10 million today. He then believes he can make $1,100,000 per year for 15 years starting a year from today. 15 years from today he'll need to pay out $1,000,000 in damages due to liver failure of customers. If Dr. Fauci has a discount rate of 14% and uses this as his reinvestment rate, what is the project's MIRR and should he start it?

Reference no: EM132911128

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