Question: Problem 10-11 MIRR and NPV Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below: Year

Problem 10-11 MIRR and NPV

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 12%. 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?

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