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Author Question: Pappas Products is considering Projects S and L, whose cash flows are shown below. These projects ... (Read 59 times)

lauraleepop

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Pappas Products is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO believes the IRR is the best selection criterion, while the CFO advocates the MIRR. If the decision is made by choosing the project with the higher IRR rather than the one with the higher MIRR, how much, if any, value will be foregone? Note that under some conditions the choice will have no effect on the value gained or lost.

WACC:10%    
 

0

1

2

3

4

CFS

–$1,130

$570

$620

$120

$120

CFL

–$2,780

$680

$755

$830

$1,430


$0.00


$1.14


$1.30


$1.62



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Marked as best answer by lauraleepop on Aug 7, 2023

reason44

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lauraleepop

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


amynguyen1221

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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