Question: Consider the following two mutually exclusive projects. Time Project A Project B 0 -$300 -$405 1 -$387 $134 2 -$193 $134 3 -$100 $134 4

Consider the following two mutually exclusive projects.

Time Project A Project B

0 -$300 -$405

1 -$387 $134

2 -$193 $134

3 -$100 $134

4 $600 $134

5 $600 $134

6 $850 $134

7 -$180 $0

What is each projects MIRR with a cost of capital of 12%? Which project should be selected?

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