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 | $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.

%____

Answer #1

Answer: 11.62%

Project that has maximum NPV also maximizes shareholder value.

Hence, Project X is the better project and its MIRR is 11.62%

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
$370
$650
Project Y
-$1,000
$1,100
$110
$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.
%=

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
$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
.
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
$100
$280
$400
$750
Project Y
-$1,000
$900
$110
$45
$55
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
$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.

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 $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.

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.

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