An Investor Is Considering a Project That Will Generate $900,000

Multiple Choice

An investor is considering a project that will generate $900,000 per year for four years. In addition to upfront costs, at the completion of the project at the end of the fifth year there will be shut-down costs of $400,000. If the cost of capital is 4.4%, based on the MIRR, at what upfront costs does this project cease to be worthwhile?

A) $2.62 million
B) $2.91 million
C) $3.21 million
D) $3.50 million