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A firm is considering two mutually exclusive projects, X and Y, with the following cash flows; the projects are equally risky, and their WACC is

A firm is considering two mutually exclusive projects, X and Y, with the following cash flows; the projects are equally risky, and their WACC is 10%. What is the MIRR of the project that maximizes shareholder value?

t =

0

1

2

3

4

Project P

-1,000

100

300

500

700

Project Q

-1,000

900

200

200

100

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