MIRR unequal lives. Grady Enterprises is looking at two project opportunities for a parcel of land the company currently owns. The first project is arestaurant, and the second project is a sports facility. The projected cash flow of the restaurant is an initial cost of $1 comma 420 comma 000

1,420,000 with cash flows over the next six years of $150 comma 000

150,000 (year one), $250 comma 000

250,000 (year two), $ 320 comma 000

$320,000 (years three throughfive), and $1 comma 800 comma 000

1,800,000 (year six), at which point Grady plans to sell the restaurant. The sports facility has the following cashflows: an initial cost of $2 comma 480 comma 000

2,480,000 with cash flows over the next four years of $360 comma 000

360,000 (years one throughthree) and $3 comma 250 comma 000

3,250,000 (year four), at which point Grady plans to sell the facility. The appropriate discount rate for the restaurant is 9.5

9.5% and the appropriate discount rate for the sports facility is 11.5

11.5%. What are the MIRRs for the Grady Enterprisesprojects? What are the MIRRs when you adjust for the unequallives? Do the MIRR adjusted for unequal lives change the decision based on theMIRRs? Hint: Take all cash flows to the same ending period as the longest project.

If the appropriate reinvestment rate for the restaurant is 9.5

9.5%, what is the MIRR of the restaurantproject?

nothing

% (Round to two decimalplaces.)