Question
Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below: YearXY 0-$1,000-$1,000 11001,000 2300100 340050 470050
Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below:
YearXY
0-$1,000-$1,000
11001,000
2300100
340050
470050
The projects are equally risky, and their cost of capital is 12%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Which project has the higher MIRR?
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
