Question
A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 Project x -$1000 $90
A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:
| 0 | 1 | 2 | 3 | 4 | |
| Project x | -$1000 | $90 | $300 | $370 | $650 |
| Project Y | -$1000 | $900 | $100 | $45 | $50 |
The projects are equally risky, and their WACC is 10%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places.
%
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The New Finance Overreaction Complexity And Their Consequences
Authors: Robert A. Haugen
4th International Edition
0132775875, 9780132775878
