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; the projects are equally risky, and their WACC is 9.5%. What is the MIRR of the project that maximizes shareholder value? t = 0 1 2 3 4 5 Project X -1,000 150 250 325 425 425 Project Y -1,000 750 250 175 125 100 O 12.77% 15.54% 13.13% 14.55% 16.97%

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