Question
3. The table below presents the cash-flows associated to projects X and Y: Project YEAR 0 1 2 3 4 5 6 X Investment 1500
3. The table below presents the cash-flows associated to projects X and Y:
| Project | YEAR | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| X | Investment | 1500 | 1000 |
|
|
|
|
|
| Cash-flow |
| 500 | -200 | 2000 | 1075 | - | - | |
| Y | Investment | 1000 | 200 | 1500 | 100 |
|
|
|
| Cash-flow |
| 500 | 1200 | 375 | 1025 | 2780 | 1070 |
Use the MIRR to select the best project given a cost of capital of 10% and return on new investments of 15%. (0,5 pct)
MIRRX=.
MIRRY=..
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
