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Compute the Modified Internal Rate of Return (MIRR) for Project A and show your work: Big Company is evaluating two projects, Project A and Project

Compute the Modified Internal Rate of Return (MIRR) for Project A and show your work:

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Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company has a WACC of 9%. The expected Free Cash Flows of the projects are as follows: Period Annual Cash Flows Project "A" Annual Cash Flows Project "B" 0 1 ($1,000) 775 275 120 ($1,000) 100 450 745 2 3

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