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An expansion project being considered by your firm has an initial cost of $8,000,000 and expected...

An expansion project being considered by your firm has an initial cost of $8,000,000 and expected net cash flows of $1,500,000 per year for the first 2 years, 1,800,000 for the third and fourth years, and $1,900,000 per year for the fifth and sixth years. All cash flows will occur at the end of each year. Assume that the project will be terminatedat the end of the sixth year. Your firm’s cost of capital is 11%. Calculate the Net Present Value (NPV), the Modified Internal Rate of Return (MIRR), the Discounted Payback Period, and the Equivalent Annual Annuity for this project. Should the project be accepted? Why or why not? Give an interpretation for each of the four methods and indicate how they are used.

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