A firm is considering two mutually exclusive projects, & alia 1, 4 0 1 2 3 -$1,000 $110 $320 $370 $650 Project X Project Y -$1,000 $1,000 $110 $50 $45 The projects are equally risky, and their WACC is 10%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 11P
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A firm is considering two mutually exclusive projects, Xaria Y, with the following cash flows:
0
1.25 X %
1
2
3
4
Project X
- $1,000
$110
$320
$370
$650
Project Y
-$1,000 $1,000
$110
$50
$45
The projects are equally risky, and their WACC is 10%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate
calculations. Round your answer to two decimal places.
Transcribed Image Text:A firm is considering two mutually exclusive projects, Xaria Y, with the following cash flows: 0 1.25 X % 1 2 3 4 Project X - $1,000 $110 $320 $370 $650 Project Y -$1,000 $1,000 $110 $50 $45 The projects are equally risky, and their WACC is 10%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places.
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