Question: Fin 401 is considering two projects. Its WACC is 10%. Project A Project B Year 0 (investment) -1000 -2000 Year 1 500 400 Year 2
Fin 401 is considering two projects. Its WACC is 10%.
|
| Project A | Project B |
| Year 0 (investment) | -1000 | -2000 |
| Year 1 | 500 | 400 |
| Year 2 | 600 | -500 |
| Year 3 | 700 | 3000 |
What is MIRR (Modified Internal Rate of Return) of Project B (WACC is 10%)?
What is the payback period of Project A?
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