Question: 10-11. Your company is considering two mutually exclusive projects, J and K, whose costs and cash flows are shown below: Year J K 0 $(5,000)
10-11. Your company is considering two mutually exclusive projects, J and K, whose costs and cash flows are shown below:
| Year | J | K |
| 0 | $(5,000) | $(5,000) |
| 1 | 1,000 | 4,500 |
| 2 | 1,500 | 1,500 |
| 3 | 2,000 | 1,000 |
| 4 | 4,000 | 500 |
The projects are equally risky, and their cost of capital is 12%. You must make a recommendation, and you must base it on the modified IRR (MIRR). What is the MIRR of the better project?
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