You have decided to build an integrated-living retirement home at Sweet Briar co

Question

You have decided to build an integrated-living retirement home at Sweet Briar college that will have health care and shopping as part of the development. You know that Sweet Briar requires a 15% return on any investment they make. After heavy initial investments the first several years, the project is supposed into positive cash flow in Year 4. The projected cash flows for the project are shown below. If you do not show your work for the problems below, please indicate your inputs on the calculator. Year 0 (investment) -$ 10,000,000 Year 1 -$ 5,000,000 Year 2 -$ 2,500,000 Year 3 -$ 500,000 Year 4 $ 1,250,000 Year 5 $ 5,000,000 Year 6 $ 7,500,000 Year 7 $ 7,500,000 Year 8 $ 5,000,000 What is the NPV of this project? (4 points) What is the IRR for this stream of cash flows? (4 points) What is the MIRR? (4 points)

Explanation / Answer

6 months

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