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Find the maximum shutdown costs you could incur

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Reference no: EM131146977

You are getting ready to start a new project that will incur some clean-up and shutdown costs when it is completed.

The project costs $5.4 million up-front and is expected to generate $1.1 million per year for 10 years and then have some shutdown costs in year 11.

Use the IRR approach to find the maximum shutdown costs you could incur and still meet your cost of capital of 15% on this project.

Reference no: EM131146977

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