Question: Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below: YearXY 0-$1,000-$1,000 11001,000 2300100 340050 470050

Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below:

YearXY

0-$1,000-$1,000

11001,000

2300100

340050

470050

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?

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