PART 3 3 Marks JANA company is analyzing a new project. The future estimated cash flows for this project are: Year

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PART 3 3 Marks JANA company is analyzing a new project. The future estimated cash flows for this project are: Year

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PART 3 3 Marks
JANA company is analyzing a new project. The future estimatedcash flows for this project are:
Year Project’s cash Flows
0 ?
1 600,000
2 450,000
3 700,000
4 -800,000
a. Estimate the investment amount (initial outlay), if thepayback period is 1. 5 and the discount rate is 15% percent.(0.5 Marks)
b. Estimate the project’s MIRR. (2 Marks)
c. Based on the modified internal rate ofreturn recommend if JANA company should accept or reject theconsidered project. (0.5 Marks)
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