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Business, 16.03.2020 21:26 BigGirlsTheBest

Suppose a firm has the following cash flows associated with a project (due to the expenses of cleaning up the site and winding down operations at the end of the project). Due to the existence of multiple IRRs, you cannot use IRR to determine if the project should be undertaken. Calculate the MIRR (Modified Internal Rate of Return) for the project, assuming efin = 6% and einv = 12%. Is this project justified?

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