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**johnkw87** does anyone know how to calculate this problem using excel....5. Star Industries owns and operates landfills for several municipalities throughout the East Coast. Star typically contracts with the municipality to provide landfill services for a period of 20 years. It typically costs $10 million to construct the new landfill results initially. Maintenance is generally required on the landfill at the end of year 10 which results in a cash outflow that year of an additional $5 million. This change in sign on the stream of cash flows over the 20-year contract period introduces the potential for multiple IRRs, so Star’s management has decided to use the MIRR to evaluate new landfill investment contracts. Plus, Star doesn’t like the idea that the IRR is the assumed reinvestment rate when using this methodology. The annual cash inflows to Star begin in year 1 and extend through year 20 and are estimated to equal $3 million (note that this does not reflect the cost of maintenance in year 10). Star uses a 10% discount rate to evaluate its new projects.

a. What are the project’s NPV and MIRR? (**I suggest using Excel to do this**).

b. Is this a good investment opportunity for Star Industries? Why or why not?