Q.1                 Cash flows for two mutually exclusive projects are shown below:                           Year   CFM   CFN         0   -200   -200         1   85   60         2   85   85         3   85   110                         Both projects have a cost of capital of 10%.                             e(i). Calculate the MIRR for CFm projects.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section10.4: Internal Rate Of Return (irr)
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Q.1                
Cash flows for two mutually exclusive projects are shown below:      
                 
  Year   CFM   CFN      
  0   -200   -200      
  1   85   60      
  2   85   85      
  3   85   110      
                 
Both projects have a cost of capital of 10%.          
                 
e(i). Calculate the MIRR for CFm projects.
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