5. The Basics of Capital Budgeting: Evaluating Cash Flows: MIRR The Basics of Capital Budgeting: Evaluating Cash Flows: MIRR Business executives often prefer to work with rate of return, so to overcome some of the IRR's limitations the modified IRR was devised. The MIRR equation is: t=0N(1+r)COFt=(1+MIRR)Nt=0NCIFt(1+r)NtPVcosts=(1+MIRR)NTV While the IRR's reinvestment rate assumption is the IRR, the MIRR's reinvestment rate assumption is the project's_. As a result, the MIRR is generally a better indicator of a project's true than IRR. Unlike the IRR, there can three criteria are equally good when evaluating projects. If projects are mutually exclusive and they differ in size, conflicts in project acceptance arise. In these cases, the is the best decision method because it selects the project that maximizes firm value. What is Project A's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. % What is Project B's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. %