You are analyzing a proposed new factory your company is


You are analyzing a proposed new factory your company is considering. It is expected to cost $31mm, and the incremental after tax profits are projected to be $3mm in year 1, $6mm in year 2, $11mm in year 3, $13mm in year 4, and $13mm in year 5. If you assume after tax returns are received at year-end, and the WACC is 9%:

Draw a timeline.

Calculate MIRR.

Should your company build the factory?

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Financial Management: You are analyzing a proposed new factory your company is
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