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 11.5%. What is the MIRR of the project that maximizes shareholder value? t = 0 1 2 3 4 5 Project x -900 125 225 375 425 425 Project Y -900 625 275 225 175 125 O 15.29% O 15.75% O 18.03% O 16.69% O 20.14%
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