Question
Problem 11-13 MIRR A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 Project
Problem 11-13 MIRR
A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:
| 0 | 1 | 2 | 3 | 4 |
| Project X | -$1,000 | $110 | $300 | $430 | $750 |
| Project Y | -$1,000 | $900 | $110 | $45 | $55 |
The projects are equally risky, and their WACC is 8.0%. What is the MIRR of the project that maximizes shareholder value? Round your answer to two decimal places.
%
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The Handbook Of Financial Instruments
Authors: Frank J. Fabozzi
1st Edition
0471220922, 978-0471220923
