Mntana mines has a non-normal cash flow


Montana Mines has a non-normal cash flow project (time zero and time N have negative cash flow, but time one through time N-1 have positive cash flows) with internal rates of return of 12.21% and 37.52%. If the WACC for Montana Mines is 10%, should they adopt the project? Explain your decision.

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Finance Basics: Mntana mines has a non-normal cash flow
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