Question
11. MIRR A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 Project X
11.
MIRR
A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:
| 0 | 1 | 2 | 3 | 4 |
| Project X | -$1,000 | $90 | $300 | $370 | $700 |
| Project Y | -$1,000 | $1,000 | $110 | $45 | $55 |
The projects are equally risky, and their WACC is 8%. What is the MIRR of the project that maximizes shareholder value? Round your answer to two decimal places. Do not round your intermediate calculations.
%
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Public Finance
Authors: Harvey S Rosen
6th Edition
0072374055, 978-0072374056
