A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below:

Years 0 1 2 3 4

S -1,100 900 350 100 10

L -1,100 0 300 550 850

The company's cost of capital is 12 percent, and it can get an unlimited amount of capital at that cost. The cutoff payback period is two years.

Use a data table to do a sensitivity analysis to see how cost of capital affects the IRR and MIRR of the two projects. Explain the intuition.