IncIs Considering Projects S and L, Whose Cash Flows Are

question 88

Multiple Choice

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.
$$\begin{array} { | l | r | r | r | r | r | } \hline \text { WACC: } & { 10.75 \% } & & & \\\hline & 0 & 1 & 2 & 3 & 4 \\\hline C F F S _ { S } & - \$ 1,100 & \$ 375 & \$ 375 & \$ 375 & \$ 375 \\\hline C F L & - \$ 2,200 & \$ 725 & \$ 725 & \$ 725 & \$ 725 \\\hline\end{array}$$

• A)$32.12
• B)$35.33
• C)$38.87
• D)$40.15
• E)$42.16

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Definitions:

Tripeptide

A molecule composed of three amino acids linked together by peptide bonds.

YAP

A protein involved in the Hippo signaling pathway, playing a crucial role in controlling organ size and tumor suppression.

C-terminus

The end of a protein or peptide chain that terminates with a free carboxylic acid group (-COOH).

Isoelectric Point

The pH at which a molecule carries no net electrical charge, crucial for predicting molecule behavior in different environments.