Question: Your company is considering two mutually exclusive projects, X and Y whose costs and cash flows are shown below. Assume that the projects are equally
Your company is considering two mutually exclusive projects, X and Y whose costs and cash flows are shown below. Assume that the projects are equally risky, and their cost of capital is 12%. Year Project X Project Y D $5.500) 55.500) 1 1.000 4, SOD 2 1.500 1,500 3 2.000 1,000 4,500 800 What are MIRRs of Project X and Project Y? Which project you will accept based on MIRR project selection criterion, if projects are mutually exclusive? MIRRX-17.49%, MIRRY 18.39% accept Project Y MIRRx - 16.46%; MIRRY = 16.02%: accept Project X MIRRX - 17.80% MIRRY 17.30%: accept Project X 245
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