Question: 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

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	1,000	4,500
2	1,500	1,500
3	2,000	1,000
4	4,000	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. Do not round intermediate calculations. Round your answers to two decimal places.

Project X: %

Project Y: %

Which project has the higher MIRR?

-Select-Project XProject YItem 3 has the higher MIRR.

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