Your company is considering two mutually exclusive
June 7th, 2024
MIRR and NPVYour company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below:Year X Y0 -$5,000 -$5,000 1 1000 4,500 2 1500 1500 3 2000 1000 4 4000 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 %Which project has the higher MIRR?