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10. Streamerworks Corporation is evaluating two independent projects with the following net cash flows: Year Project Light Bulb Project Cell Phone 0 -$100,000 -$100,000 1

10. Streamerworks Corporation is evaluating two independent projects with the following net cash flows:

Year Project Light Bulb Project Cell Phone
0 -$100,000 -$100,000
1 $60,000 $12,000
2 $50,000 $25,000
3 $30,000 $150,000

Streamerworks weighted average cost of capital is 12 percent.

A. What is the MIRR of Project Light Bulb and Project Cell Phone?

B. Which project(s) should Streamerworks choose?

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