Question: A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: The projects are equally risky, and their WACC is

A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:

3 2 + $300 $100 Project X Project Y -$1,000 -$1,000 $100

The projects are equally risky, and their WACC is 12%. What is the MIRR of the project that maximizes shareholdervalue?

3 2 + $300 $100 Project X Project Y -$1,000 -$1,000 $100 $1,000 $400 $50 $700 $50

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