Company X wants to acquire another similar company. It estimates that net cash flows for the acquired company will be $8,500,000 per year for 10 years. The cost is $50,000,000. The company's cost of capital is 10 percent.
A. Calculate NPV, IRR, and MIRR.
b. Should the company go ahead with the project based on your calculations? Why or why not?
C. Discuss 3 factors that might change your decision