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

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Project X	-$1,000	$90	$280	$400	$650
Project Y	-$1,000	$1,100	$100	$55	$45

The projects are equally risky, and their WACC is 9%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations.

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:

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Project S	-$1,000	$881.86	$250	$10	$15
Project L	-$1,000	$10	$240	$400	$769.20

The company's WACC is 10.5%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.)

Project S costs $16,000 and its expected cash flows would be $7,000 per year for 5 years. Mutually exclusive Project L costs $49,500 and its expected cash flows would be $7,750 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend?

Select the correct answer.

a. Project L, since the NPVL > NPVS.

b. Neither Project S nor L, since each project's NPV < 0.

c. Both Projects S and L, since both projects have IRR's > 0.

d. Project S, since the NPVS > NPVL.

e. Both Projects S and L, since both projects have NPV's > 0.

A firm with a WACC of 10% is considering the following mutually exclusive projects:

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Project 1	-$300	$55	$55	$55	$230	$230
Project 2	-$700	$200	$200	$120	$120	$120

Which project would you recommend?

Select the correct answer.

a. Project 2, since the NPV2 > NPV1.

b. Both Projects 1 and 2, since both projects have IRR's > 0.

c. Both Projects 1 and 2, since both projects have NPV's > 0.

d. Neither Project 1 nor 2, since each project's NPV < 0.

e. Project 1, since the NPV1 > NPV2.