Question
A firm is considering two mutually exclusive projects, X and Y, with the following cash flow: Project X: Project Y: Year CF Year CF 0
A firm is considering two mutually exclusive projects, X and Y, with the following cash flow:
Project X: Project Y:
Year CF Year CF
0 -$1,000 0 -$1000
1 $90 1 $1,100
2 $320 2 $110
3 $370 3 $45
4 $650 4 $45
The project are equally risky, and their WACC is 8%. What is the MIRR of the project that maximizes shareholder value?
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Finance For Nonfinancial Managers Beginners Handbook For Finance
Authors: Murugesan Ramaswamy
1st Edition
1516973801, 978-1516973804
