A mining company plans to mine a beach for rutile. To do so will cost $15 million up front and then produce cash flows of $8 million per year for five years. At the end of the sixth year ther company will incur shut-down and clean-up costs of $7 million. If the cost of capital is 12%, then what is the MIRR for this project? OA-110% OB-100% OC -70% OD. -90%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A mining company plans to mine a beach for rutile. To do so will cost $15 million up front and then produce cash flows of $8 million per year for five years. At the end of the sixth year the
company will incur shut-down and clean-up costs of $7 million. If the cost of capital is 12%, then what is the MIRR for this project?
OA-110%
OB. -100%
O.C. -70%
OD -90%
Transcribed Image Text:A mining company plans to mine a beach for rutile. To do so will cost $15 million up front and then produce cash flows of $8 million per year for five years. At the end of the sixth year the company will incur shut-down and clean-up costs of $7 million. If the cost of capital is 12%, then what is the MIRR for this project? OA-110% OB. -100% O.C. -70% OD -90%
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