1. TI Inc. is considering two 5-year investment projects (A and B). The projects cash flows are...
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1. TI Inc. is considering two 5-year investment projects (A and B). The projects’ cash flows are summarized in the table below. TI’s WACC is 7%.
Pick one project (A or B): What are the IRR and MIRR of this project? Which metric you would recommend using to Truman’s CEO and why? (Explain briefly)
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Project A CFs | - $100,000 | $1,000 | $2,000 | $3,000 | $3,000 | $160,000 |
| Project B CFs | - $100,000 | $50,000 | $40,000 | $30,000 | $3,000 | $1,000 |
Expert Answer:
Project Selection and Evaluation Based on the information provided we need to choose one project A o... View the full answer
Related Book For 
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
