MIRR executives often prefer to work wi rate of return, so to overco me some of the iRR s limitations the modified RR was devised. The th Se t- , MIRR equation is: +MIRR PVcosts (i+MIRR) the project's (Select-).As a result, the MIRR is While the IRR's reinvestment rate assumption is the IRR, the MIRR's reinvestment rate assumption is generally a better indicator of a project's trueSelectthan IRR. Unlike the IRR, there can Select- be more than one MIRR, and the MIRR can compared with the project's Select when deciding to accept or reject projects. For Seuct: projects, the NPV, IRR, and same accept/reject conclusion; so the three criteria are equally good when evaluating Selectprojects. If projects are m differ in size, conflicts in project acceptance Select. arise. In these cases, the Select 7 utually exclusive and they is the best decision method because it selects the project that maximizes firm value. Quantitative Problem: 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 79. 230 730 380 280 Project A 1,30 650 Project B1,350 250 What is Project A's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations. What is Project B's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations. If the projects were independent, which project(s) would be accepted according to the MIRR method? Select- If the projects were mutually exclusive, which project(s) would be accepted according to the MIRR method? Select