Question: 2. Precision Products is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable.

2. Precision Products is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. a. Calculate the MIRR of each project. (1 point) b. If the decision is made by choosing the project with the higher MIRR, how much value will be foregone? (0.5 point) WACC = 10% Year: 0 1 2 3 4 CFS: -$1,000 $375 $375 $375 $375 CFL: -$2,010 $725 $725 $725 $725

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