Question

**MIRR and NPV**

Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below:

Year |
X |
Y |
||

0 | -$5,000 | -$5,000 | ||

1 | 1,000 | 4,500 | ||

2 | 1,500 | 1,500 | ||

3 | 2,000 | 1,000 | ||

4 | 4,000 | 500 |

The projects are equally risky, and their cost of capital is 15%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Calculate the two projects' MIRRs. Do not round intermediate calculations. Round your answers to two decimal places.

Project X: %

Project Y: %

Which project has the higher MIRR?

-Select-Project XProject YItem 3 has the higher MIRR.

Answer #1

Your company is considering two mutually exclusive projects, X
and Y, whose costs and cash flows are shown below:
Year
X
Y
0
-$5,000
-$5,000
1
1,000
4,500
2
1,500
1,500
3
2,000
1,000
4
4,000
500
The projects are equally risky, and their cost of capital is
11%. You must make a recommendation, and you must base it on the
modified IRR (MIRR). Calculate the two projects' MIRRs. Do not
round intermediate calculations. Round your answers to two decimal...

Your company is considering two mutually exclusive projects, X
and Y, whose costs and cash flows are shown below: Year X Y 0
-$5,000 -$5,000 1 1,000 4,500 2 1,500 1,500 3 2,000 1,000 4 4,000
500 The projects are equally risky, and their cost of capital is
14%. You must make a recommendation, and you must base it on the
modified IRR (MIRR). Calculate the two projects' MIRRs. Round your
answers to two decimal places. Project X % Project...

Your company is considering two mutually exclusive projects, X
and Y, whose costs and cash flows are shown below:
Year
X
Y
0
-5000
-5000
1
1000
4500
2
1500
1500
3
2000
1000
4
4000
500
The projects are equally risky, and their cost of capital is
13%. You must make a recommendation, and you must base it on the
modified IRR (MIRR). Calculate the two projects' MIRRs. Do not
round intermediate calculations. Round your answers to two decimal...

Your company is considering two mutually exclusive projects, X
and Y, whose costs and cash flows are shown below:
Year
X
Y
0
−$2,000
−$2,000
1
200
2,000
2
600
200
3
800
100
4
2,400
75
The projects are equally risky, and the firm's required rate of
return is 12 percent. You must make a recommendation, and you must
base it on the modified IRR. What is the MIRR of the best
project?
a.
12.00%
b.
12.89%
c.
11.46%...

MIRR
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
$300
$400
$650
Project Y
-$1,000
$1,000
$100
$45
$55
The projects are equally risky, and their WACC is 10.0%. What is
the MIRR of the project that maximizes shareholder value? Round
your answer to two decimal places.

MIRR
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
$400
$700
Project Y
-$1,000
$1,100
$90
$45
$45
The projects are equally risky, and their WACC is 12%.
What is the MIRR of the project that maximizes shareholder
value? Round your answer to two decimal places. Do not
round your intermediate calculations. _____%

MIRR 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
$110 $300 $370 $700 Project Y -$1,000 $900 $90 $50 $45 The projects
are equally risky, and their WACC is 13%. What is the MIRR of the
project that maximizes shareholder value? Round your answer to two
decimal places. Do not round your intermediate calculations. %

MIRR
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
$370
$700
Project Y
-$1,000
$1,100
$100
$55
$50
The projects are equally risky, and their WACC is 11%. What is
the MIRR of the project that maximizes shareholder value? Round
your answer to two decimal places. Do not round your intermediate
calculations.

A firm is considering two mutually exclusive projects, X and Y,
with the following cash flows
.
Project X
-$1,000
$100
$280
$430
$650
Project Y
-$1,000
$900
$100
$50
$55
The projects are equally risky, and their WACC is 8%. What is
the MIRR of the project that maximizes shareholder value? Do not
round intermediate calculations. Round your answer to two decimal
places

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
$110
$300
$370
$650
Project Y
-$1,000
$1,000
$100
$55
$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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