Question: Your firm is considering two equally risky projects, Alpha and Beta, with the incremental cash flows listed in the table below. The WACC is 12.00%

Your firm is considering two equally risky projects, Alpha and Beta, with the incremental cash flows listed in the table below. The WACC is 12.00% .
 Your firm is considering two equally risky projects, Alpha and Beta,
A. What is the NPV of each project? Round to the nearest dollar.
B. What is the MIRR of the better project? Record your answer in percentage and to two decimal places.

Year 0 1 2 Project Alpha -500,000 -10,000 200.000 300.000 200.000 150.000 -100,000 Project Beta -500,000 200,000 -40.000 300,000 40,000 150,000 75,000 3 4 in 6

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!