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Charlie's Coffee Company is considering two mutually exclusive projects. Below are the cash flows. Year Project 1 Project 2 0 -5,000 -5,000 1 1,000 4,500
Charlie's Coffee Company is considering two mutually exclusive projects. Below are the cash flows. Year Project 1 Project 2 0 -5,000 -5,000 1 1,000 4,500 2 1,500 1,500 3 2,000 1,000 4 4,000 500 Both of the projects cost of capital is 12%. What is your recommendation based on Modified IRR-MIRR (you must show your calculations)? Which project has the higher MIRR? What does that mean
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