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 $430 $700 Project Y -$1,000 $1,000 $100 $45 $55 The projects are equally risky, and their WACC is 10%. What is the MIRR, Payback Period or Discount Payback Period of project X and project Y.  Note: DO NOT SOLVE ON EXCEL

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
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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 $430 $700
Project Y -$1,000 $1,000 $100 $45 $55

The projects are equally risky, and their WACC is 10%. What is the MIRR, Payback Period or Discount Payback Period of project X and project Y. 
Note: DO NOT SOLVE ON EXCEL

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