Your company is considering two mutually exclusive projects X and Y whose costs and cash flows are shown below Project X Project Y Year Cash Flows Cash Flows 0 ($2,000) ($2,000) 1 200 2,000 2 600 200 3 800 100 4 1,400 75 Each project is equally risky, and the companys Cost of Capital is 12 You must make a recommendation based on the MIRR What is the MIRR of the best project

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Question: Your company is considering two mutually exclusive projects X and Y whose costs and cash flows are shown below: Project X Project Y Year Cash

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

	Project X	Project Y
Year	Cash Flows	Cash Flows
0	($2,000)	($2,000)
1	200	2,000
2	600	200
3	800	100
4	1,400	75

Each project is equally risky, and the companys Cost of Capital is 12%. You must make a recommendation based on the MIRR. What is the MIRR of the best project?

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