A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:...

A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:

Project X	-$1,000	$110	$320	$400	$750
Project Y	-$1,000	$1,000	$90	$45	$50

The projects are equally risky, and their WACC is 11%. 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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Expert Solution

project X MIRR = 14.83%

project Y MIRR = 12.09%

Of the two projects project X has highest MIRR that maximizes shareholders value.

jeff jeffy answered 1 year ago

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