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PROBLEM: Nast Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable.Managers

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PROBLEM: Nast Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable.Managers will make the accept / reject decision by choosing the proiect with the higher MIRR rather than the one with the higher NPV. TASK: Please calculate how much value will be forgone if the accept/ reject decision is made using MIRR instead of NPV. WACC: 10.7S% CFS ($1,100) $375 $375 $375 $375 CFL ($2,200) $725 $725 $725 $725

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