'hard' forms of capital rationing? Give two approaches available to resolve capital rationing problems. Question 2 (2.5 marks): Your firm uses the IRR method and asks you to evaluate the following mutually exclusive projects: Cash flows () Proposal A Proposal B 0 Year 1 2 3 4 -51,955 22,000 22,000 22,000 22,000 -51,955 0 11,000 22,000 71,885 (a) Using the appropriate IRR method, evaluate these proposals assuming a required rate of return of 10 per cent. Compare your answer with the net present value method. (b) Calculate the modified IRR What advantages does the MIRR have over the IRR in assessing capital investment decisions?