Question: Us excel A company is considering mutually exclusive projects. The free cash flows associated with these projects are as follows: Project A Project B Initial
Us excel
A company is considering mutually exclusive projects. The free cash flows associated with these projects are as follows: Project A Project B Initial outlay -$100,000 -S100,000 Year 1 $32,000 SO Year 2 $32,000 SO Year 3 $32,000 so Year 4 $32,000 SO Year 5 $32,000 $200,000 The required rate of return on these projects is 11%. They are of equal risk. 1. What is each project's MIRR? 2. Which project should be chosen? 3. Is it possible for conflicts to exist between NPV and IRR when independent projects are being evaluated? Explain your
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