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Consider the following cash flows for projects A and B. Year Project A Project B 0 -$1000 -$1000 1 375 900 2 375 700 3

  1. Consider the following cash flows for projects A and B.

    Year Project A Project B

    0 -$1000 -$1000

    1 375 900

    2 375 700

    3 375 500

    4 375 -200

    5 -100 200

    The cost of capital for both projects is 10%. What is the MIRR of projects A and B, respectively?

    1.

    10.51%(A), 22.87% (B)

    2.

    12.51%(A), 21.87% (B)

    3.

    9.81%(A), 11.97% (B)

    4.

    20.87%(A), 21.87% (B)

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