Calculating MIRR OTR Trucking company runs a fleet of long-haul trucks and has recently expanded into the Midwest, where it has decided to build a maintenance facility. This project will require an initial cash outlay of 20.5 million and will generate annual cash flows of $3.5 million per year for years 1 through 3. In year 4, the project will provide a net negative cash flow of $5.8 million due to anticipated expansion of and repairs to the facility. During years 5 through 10 the project will provide cash inflows of $1.4 million per year calculate the projects NPV and IRR where the discount rate is 11 percent is the project a worthwhile investment based on these two measures? Why or why not? calculate the projects MIRR is the project a worthwhile investment based on this measure? Why or why not?
Calculating MIRR
OTR Trucking company runs a fleet of long-haul trucks and has recently expanded into the Midwest, where it has decided to build a maintenance facility. This project will require an initial cash outlay of 20.5 million and will generate annual cash flows of $3.5 million per year for years 1 through 3. In year 4, the project will provide a net negative cash flow of $5.8 million due to anticipated expansion of and repairs to the facility. During years 5 through 10 the project will provide
calculate the projects
calculate the projects MIRR is the project a worthwhile investment based on this measure? Why or why not?
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