Suppose a firm is considering two mutually exclusive equally risky projects with WACC = 15% and the following cash flows: 0 1 4 Project X Project Y 5500 -$1,000 -$1,000 $800 $1,050 2 3 $750 $650 5700 $600 $450 How can you calculate the MIRR for the project that maximizes shareholder value? Assuming that your professional financial calculator is able to calculate the MIRR, use the following table to indicate which values you should enter to compute the MIRR for Project X. CF. CF CF2 CF3 CF Input Keystroke Output Arrow down Arrow down Arrow down Arrow down Arrow down IRR MIRR Suppose that your calculator does not have the ability to compute the MIRR. Here are the steps you need to take to calculate the MIRR for Project V. 1. Use the following table to indicate which values you should enter to compute the net present value (NPV) of all cash inflows. CF, CF CF, CF, CF. Input Keystroke Arrow down Arrow down Arrow down Arrow down Arrow down I/Y Output NPV 2. Use the following table to indicate which values you should enter to compute the future value of the NPV. Input Keystroke Output N I/Y PV PMT FV 3. Use the following table to indicate which values you should enter to compute the MIRR. Input N PV PMT FV I/Y Keystroke Output Finally, you can answer the question: The MIRR for the project maximizes shareholder value