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Should I recommend Adoption for my companies, as a result of these numbers? You must determine which of two mutually exclusive opportunities to choose for
Should I recommend Adoption for my companies, as a result of these numbers?
You must determine which of two mutually exclusive opportunities to choose for your company's next investment project. The cash flows for these two projects, X and Y, are illustrated below. Assuming that the appropriate discount rate is the r given below, determine the NPV, IRR, and MIRR for each of these projects and indicate which project you recommend for adoption by your company with a "yes" in the corresponding box. INPUT DATA Year 0 CFX ($12,925) ($12,925) 1 $8,281 $4,581 2 $4,681 $2,319 r 3 $3,681 $4,681 11.00% 4 $1,319 $5,681 CFY ADOPTION Y NPV $1,708 $225 IRR 19.96% 11.85% MIRR 14.86% 11.53%Step by Step Solution
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