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Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below: Year 0 X -5,000 Y -5,000
Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below:
Year 0 X -5,000 Y -5,000
Year 1 X 1,000 Y 4,500
Year 2 X 1,500 Y 1,500
Year 3 X 2,000 Y 1,000
Year 4 X 4,000 Y 500
The projects are equally risky, and their cost of capital is 13%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Calculate the two projects' MIRRs. Do not round intermediate calculations. Round your answers to two decimal places
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