Nast Inc.: How to calculate the value forgone if a project with higher MIRR is taken up.
Not what you're looking for?
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 cause $0.00 value to be lost.
WACC: 9.00%
0 1 2 3 4
CFS -$1,100 $375 $375 $375 $375
CFL -$2,200 $725 $725 $725 $725
Purchase this Solution
Solution Summary
The solution explains how to calculate the value forgone if a project with higher MIRR is taken up.
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Motivation
This tests some key elements of major motivation theories.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.