(**) WR PVcosts TV (1+MIR While the IRR's reinvestment rate assumption is the TRR, the MIRR's reinvestment rate assumption is the project's WACC B. As a result, the MIRA I generally a better indicator of a project's true than IRR. Unlike the IRR, there can B be more than one MIRR, and the MIRR can be compared with the project's WC when deciding to accept or reject projects. For et projects, the NPV, IRR, and MIRR always reach the same accept/reject conclusion; so the three criteria are equally good when evaluating moment projects. If projects are mutually exclusive and they differ in size, conflicts in project acceptance Barise. In these cases, the 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, Belinger's WACC is 11%. 0 1 Project A Projects -1,050 -1,050 700 300 200 450 385 250 700 350 What is Project AS MIRA? Do not round intermediate calculations. Round your answer to two decimal places. % What is Project B's MIRA? Do not round Intermediate calculations. Round your answer to two decimal places % of the projects were independent, which project(s) would be accepted according to the MIRR method? See B If the projects were mutually exclusive, which project(s) would be accepted according to the MERR method? B