Question: Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below: Year X Y 0 $2,000 $2,000

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

Year	X	Y
0	$2,000	$2,000
1	200	2,000
2	600	200
3	800	100
4	2,400	75

The projects are equally risky, and the firm's required rate of return is 12 percent. You must make a recommendation, and you must base it on the modified IRR. What is the MIRR of the best project?

	a.	12.00%
	b.	12.89%
	c.	11.46%
	d.	13.59%
	e.	21.29%

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