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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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