Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below:
Year X Y
0 -$5,000 -$5,000
1 1000 4,500
2 1500 1500
3 2000 1000
4 4000 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. Round your answers to two decimal places.
Project X %
Project Y %
Which project has the higher MIRR?
Recently Asked Questions
- The opportunity cost of an action is always equal to the value of; A.) the things you could have done instead of the action you choose to undertake B.) the
- If you could live anywhere in the world, where would you choose and why? What is one location in the world you would never, ever live? Why not?
- Several Websites list information on earnings surprises. Much of the information supplied is from Zacks.com . Each day the largest positive and negative