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tls043 tls043
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A year ago
Nast Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher MIRR rather than the one with the higher NPV, how much value will be forgone? Note that under some conditions choosing projects on the basis of the MIRR will not cause any value to be lost.

WACC:8%    
 

0

1

2

3

4

CFS

–$1,200

$405

$405

$405

$405

CFL

–$2,400

$775

$775

$775

$775



$20.71



$22.46



$25.49



$28.90

Textbook 
 Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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jojoliciouzjojoliciouz
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A year ago
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tls043 Author
wrote...

A year ago
Smart ... Thanks!
wrote...

Yesterday
Good timing, thanks!
wrote...

2 hours ago
Helped a lot
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