Question: A company is considering Projects A and B, whose cash flows are as the following. These projects are mutually exclusive, equally risky, and not repeatable.
A company is considering Projects A and B, whose cash flows are as the following. These projects are mutually exclusive, equally risky, and not repeatable. Which one should be chosen based on MIRR analysis?
WACC= 7.00%
| Year | 0 | 1 | 2 | 3 | 4 |
| CFa | -1100 | 500 | 600 | 150 | 100 |
| CFb | -2750 | 700 | 725 | 850 | 1400 |
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