Precious Diggers Mining, Ltd. plans to mine a field to extract copper. This capital investment project requires an initial outlay of $10 million and it is expected to generate $3 million in annual cash flows for a period of five years. The company expects to incur shut-down and clean-up costs of $2 million at the end of the sixth year.
Assuming that the firm's cost of of capital is 11%, the MIRR for this project is: