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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:
Â
| Â | 0 | 1 | 2 | 3 | 4 |
| Â | Â | Â | Â | Â | Â |
| Â | Â | Â | Â | Â | Â |
| Project X | -$1,000 | $90 | $300 | $400 | $700 |
| Project Y | -$1,000 | $1,100 | $90 | $45 | $50 |
The projects are equally risky, and their WACC is 13.0%. What is the MIRR of the project that maximizes shareholder value? Round your answer to two decimal places.
%
Â
Please show calculation. Thanks!
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