What is the project mirr

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Reference no: EM132386180

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.

Can you think of some other capital budgeting situations in which negative cash flows during or at the end of the project's life might lead to multiple IRRs? The input in the box below will not be graded, but may be reviewed and considered by your instructor.

What is the project's MIRR at r = 7%? Round your answer to two decimal places.

______ %

What is the project's MIRR at r = 13%? Round your answer to two decimal places.

______ %

Calculate the two projects' NPVs. Round your answers to the nearest cent. Enter your answers in dollars. For ex: 1.2 million should be entered as 1,200,000. Enter negative answers with minus sign.

Project 1 ______$

Project 2 _____$

Reference no: EM132386180

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