Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 11%.

	0		1		2		3		4
Project A	-1,350		600		380		230		280
Project B	-1,350		200		315		380		730

What is Project A's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations. %

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Review the MIRR equation.

The solution for MIRR is a percentage rate not a dollar value.

The MIRR calculation is dependent on the firm's WACC.

Don't forget the minus sign for the Year 0 cash flow.

Don't forget to include the Year 0 cash flow in your calculation.

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Solution

What is Project B's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations. %