8. A. Project S requires an initial outlay at t = 0 of $11,000, and its expected cash flows would be $5,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $37,500, and its expected cash flows would be $8,600 per year for 5 years. If both projects have a WACC of 13%, which project would you recommend? Select the correct answer.

a. Project S, since the NPVS > NPVL.

b. Neither Project S nor L, since each project's NPV

c. Both Projects S and L, since both projects have IRR's > 0.

d. Project L, since the NPVL > NPVS. e. Both Projects S and L, since both projects have NPV's > 0

B.

A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: Project X Project Y 0 % 1 2 3 -$1,000 $110 $300 $430 $700 -$1,000 $1,100 $90 $55 $45 The projects are equally risky, and their WACC is 12%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places. 4