A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 + + + ㅓ Project X Project Y -$1,000 $90 -$1,000 $1,100 $320 $90 $400 $50 $650 $45 The projects are equally risky, and their WACC is 9%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places. %

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter11: Venture Capital Valuation Methods
Section: Chapter Questions
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A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:
0
1
2
3
4
+
+
+
ㅓ
Project X
Project Y
-$1,000
$90
-$1,000 $1,100
$320
$90
$400
$50
$650
$45
The projects are equally risky, and their WACC is 9%. 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, X and Y, with the following cash flows: 0 1 2 3 4 + + + ㅓ Project X Project Y -$1,000 $90 -$1,000 $1,100 $320 $90 $400 $50 $650 $45 The projects are equally risky, and their WACC is 9%. 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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