12-11. Your company is considering two mutually exclusive projects, X and Y, whose costs and cash...

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12-11. Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown here: Year X Y 0 -$5,000 -$5,000 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). Which project has the higher MIRR? 12-11. Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown here: Year X Y 0 -$5,000 -$5,000 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). Which project has the higher MIRR?