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Se Driling Inc is mosidering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, newly nibl; and not npeatable
Se Driling Inc is mosidering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, newly nibl; and not npeatable The CEO believes the IRR is the best selection criterion, while the CFO advocates the MIRR. If Pite dractas is made by choosing the project with the higher IRR rather than the one with the higher MIRR, how much, if any, gulur will be Gegone, ie, what's the NPV of the chasen project versus the maximum passible NPV? Note that (1) "true value" is measud by NPV, and (2) under some conditions the choice of IRR V. MIRR will have no effect on the value lost
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