12-11. Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown here: Year X Y 0 -$5,000 -$5,000 1,000 4,500 2 1,500 1,500 تب 3 2,000 1,000 4 4,000 500 The projects are equally risky, and their cost of capital is 12%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Which project has the higher MIRR?
12-11. Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown here: Year X Y 0 -$5,000 -$5,000 1,000 4,500 2 1,500 1,500 تب 3 2,000 1,000 4 4,000 500 The projects are equally risky, and their cost of capital is 12%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Which project has the higher MIRR?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown here: \table[[Year,x,Y
Transcribed Image Text:12-11. Your company is considering two mutually exclusive projects, X and Y, whose
costs and cash flows are shown here:
Year
X
Y
0
-$5,000
-$5,000
1,000
4,500
2
1,500
1,500
تب
3
2,000
1,000
4
4,000
500
The projects are equally risky, and their cost of capital is 12%. You must make a
recommendation, and you must base it on the modified IRR (MIRR). Which project has
the higher MIRR?
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