P9-15 (similar to) Question Help * MIRR unequal lives Grady Enterprises is looking at two project opportunities for a parcel of land the company currently owns. The first project is a restaurant, and the second project is a sports facility. The projected cash flow of the restaurant is an initial cost of $1.490,000 with cash flows over the next six years of $230,000 (year one), $260,000 (ear two), $290,000 years three through five), and $1,700000 (year s), at which point Grady plans to sell the restaurant. The sports facility has the following cash fows initial cost of $2,500,000 with cash lows over the next four years of $360,000 (years one through three) and $3,230,000(year four), at which point Grady plans to sell the facility. The appropriate discount rate for the restaurant's 1 1 0% and the appropriate discount rate for the sports taolitys 1 1 5% What are the MIRRS for the Grady Enterprises proects? What are the MRRS when you adust for the unequal lives? Do the MRR adjusted for unequal lives change the deas on based on the MIRRs? Hint Take acash nows to the same ending perod as the longest pro ect. ?the appropriate reinvestment rate for te restaurant is 11 0%, what is te MIRR of the restaurant project? 15 61 % (Round to two decimal places ) ifthe appropriate reinvestment rate for the sports facity is 11.5%, what is the MRR of the sports fait? ?% (Round to two dermal paces.)