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 13%. 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

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