Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below:

Problem 10-11
MIRR and NPV

Year	X	Y
0	-$5,000	-$5,000
1	1000	4,500
2	1500	1500
3	2000	1000
4	4000	500

The projects are equally risky, and their cost of capital is 15%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Calculate the two projects' MIRRs. Round your answers to two decimal places.

Project X %

Project Y %

Which project has the higher MIRR?

-Select-XYItem 3

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Expert Solution

jeff jeffy answered 2 years ago

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