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Question

| Cengage MindTap-Cengage LeaD cengage Learning x G Home I chegg com × contact Us I customers x- rig cengege co static/nb/ui/index.html?nbld-62/53580 bNodeld-230925028&elsEN-9;/81 3056359/5&parentld-23;/452342 5% MINDTAP Chapter 11 Homework, part 1-Graded Dawood Al-Nasseri ? Activity Information Due Today at 11 :59 PM CDT Assignent: Chapter 11 Homework, part 1 Graded Assignamt Soon: 81486 Save Submrt Assignment for Grong Questions Question 8 of Check My Work 3. Click here to reed the eBook: Modified Internal Rate of Return (MIRR Problem Walk-Through MIRR A firm es considering two mutually cxclusive projects, × nd Y, with the following cash flows: Project X-$1,000 $100 80 $370 $750 Project Y$1,0aa $1,100 S90 The p'ujec s equally risky, and her WACC is 10 6. What is the MIRR u Lhe rujeLL S55 545 id "iaXI"lices sheholder value? Round your drs wer u Lwu deLIrrial plates. Du no round your itlemediale calculeliuns. Hide Feedback Ineorreet Check My Work A-Z :0 PM 11/2/2017 Type here to search ENG

Explanation / Answer

As we can see project Y has a higher IRR and MIRR hence it increase value more.
There the answer should be 13.82%

Year X Y 0 -1000 -1000 1 100 1100 2 280 90 3 370 55 4 750 45 MIRR 12.97% 13.82% IRR 14% 23%