Question
There are two mutually exclusive projects with the following cash flows: Time 0 1 2 3 4 5 ( NPV IRR MIRR Project A -$100m
There are two mutually exclusive projects with the following cash flows:
Time 0 1 2 3 4 5 ( NPV IRR MIRR
Project A -$100m $40m $70m $40m $10m $10m (37.3 27.8 17.2
Project B -$100m $10m $20m $70m $40m $60m (42.8 22.16 18.1
The opportunity cost of capital is 10%. Calculate the MIRR and
payback period for both projects. Which project should be selected?
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Finance Applications and Theory
Authors: Marcia Cornett
4th edition
1259691411, 978-1259691416
