Question

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 | $430 | $700 |

Project Y |
-$1,000 | $1,100 | $100 | $45 | $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**.

Answer #1

1 | 2 | 3 | 4 | FV of Cash flows | ||

Project X | $90.00 | $300.00 | $430.00 | $700.00 | ||

Project Y | $1,100.00 | $100.00 | $45.00 | $50.00 | ||

FV @ 11% | 1.5181 | 1.3676 | 1.2321 | 1.1100 | ||

FV Project X | $136.63 | $410.29 | $529.80 | $777.00 | $1,853.72 | |

FV Project Y | $1,669.88 | $136.76 | $55.44 | $55.50 | $1,917.59 | |

MIRR = (Future Value of Positive Cash Flows at the Cost Of Capital of the Firm / Present Value of all Negative Cash Flows at the Financing Cost of the Firm)^(1/n) – 1 | ||||||

Project X = [($1853.72/1000)^(1/4)]-1 | 16.68% | |||||

Project Y = [($1917.59/1000)^(1/4)]-1 | 17.68% |

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 $430 $700
Project Y: -$1,000 $1,100 $100 $55 $55
The projects are equally risky, and their WACC is 13.0%. What is
the MIRR of the project that maximizes shareholder value? 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
$100
$300
$430
$750
Project Y
-$1,000
$1,100
$100
$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.
%

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
$430
$650
Project Y
$-1,000
$1,100
$110
$50
$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:
0
1
2
3
4
Project X
-$1,000
$100
$280
$430
$700
Project Y
-$1,000
$1,000
$90
$45
$55
The projects are equally risky, and their WACC is 8%. 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
$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
$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:
0
1
2
3
4
Project X
-$1,000
$90
$320
$400
$700
Project Y
-$1,000
$1,100
$110
$45
$55
The projects are equally risky, and their WACC is 10%. 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. %

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
$100
$320
$400
$700
Project Y
-$1,000
$1,000
$90
$45
$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.
= %

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 $100 $280 $430 $750
Project Y -$1,000 $1,000 $100 $55 $45
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.

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