A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:                       0            1           2           3         4 Project X -$1,000 $90 $320 $430 $700 Project Y -$1,000 $1,000 $100 $45 $55 The projects are equally risky, and their WACC is 10%. What is the MIRR, Payback Period or Discount Payback Period of project X and project Y.  Note: DO NOT SOLVE ON EXCEL

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 13P
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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

Project X -$1,000 $90 $320 $430 $700
Project Y -$1,000 $1,000 $100 $45 $55

The projects are equally risky, and their WACC is 10%. What is the MIRR, Payback Period or Discount Payback Period of project X and project Y. 
Note: DO NOT SOLVE ON EXCEL

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