Eagle Corp. is assessing two potential projects, Project I and Project J.

Project Cash Flows and IRR:

Project	C0 ($ thousands)	C1 ($ thousands)	C2 ($ thousands)	IRR (%)
I	-85	40	45	20.50
J	-95	50	40	19.00

The opportunity cost of capital is 13%.

Requirements:

1. Critique the use of IRR as the sole decision criterion.
2. Calculate the Modified Internal Rate of Return (MIRR) for each project.
3. Recommend which project should be chosen based on the MIRR.
4. Discuss any qualitative factors that should be taken into account.