# MIRR of the better project

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Problem 11-11. MIRR and NPV Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below:

Year X Y

0 -$1,000 -$1,000

1 100 1,000

2 300 100

3 400 50

4 700 50

The projects are equally risky, and their cost of capital is 15 percent. You must make a recommendation, and you must base it on the modified IRR (MIRR). What is the MIRR of the better project? Round the answer to the nearest hundredth.

https://brainmass.com/business/modified-internal-rate-of-return/mirr-of-the-better-project-273762

#### Solution Summary

The solution explains how to calculate the MIRR of the better project.

$2.19