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Consider two mutually exclusive projects with the following cash flows: Project Ais a 6 year project with initial (time O) cash outflow of 40,000 and
Consider two mutually exclusive projects with the following cash flows: Project Ais a 6 year project with initial (time O) cash outflow of 40,000 and time 1 through 6 cash inflows of 8000,14000,13000,12000,11000,and 10000 respectively. Project B is a 3 year project with initial (time 0) cash outflow of 20,000 and time 1 through 3 cash inflows of 7000,13000, and 12000 respectively. Assuming a 11.5% cost of capital compute the MIRR for project B. O 14.6045% 17.47% 25.197% 20.733%
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