You have been assigned the task of evaluating two mutually exclusive projects with the following cash flows:

Year Project A Cash Flows Project B Cash Flows

0 $(5,000) $(5,000)

1 1,000 4,500

2 1,500 (1,500)

3 (2,000) 1,000

4 4,000 500

Requirements: The projects are equally risky, and their cost of capital is 12%. You must make a recommendation, and you must base it on the MIRR. What is the MIRR of the better project?