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A mining company plans to mine a beach for rutile. To do so will cost $14 million up front and
then produce cash flows of $7 million per year for five years. At the end of the sixth year the
company will incur shut - down and clean - up costs of $6 million. If the cost of capital is 12% ,
then what is the MIRR for this project? A. 110% B. 70% C. 100% D. 90%

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A mining company plans to mine a beach for rutile- To do so will cost.pdf

  • 1. A mining company plans to mine a beach for rutile. To do so will cost $14 million up front and then produce cash flows of $7 million per year for five years. At the end of the sixth year the company will incur shut - down and clean - up costs of $6 million. If the cost of capital is 12% , then what is the MIRR for this project? A. 110% B. 70% C. 100% D. 90%