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Modified IRR (MIRR)

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

Year X Y
0 (1,0000) (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 12% you must make a recommendation, and you must base it on the modified IRR (MIRR). What is the MIRR of the better project?

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

                Year        X           Y
                 0         (1,0000)    (1,000) -1000
                 1          100         1,000 1000
                 2          300         100 100
                 ...

Solution Summary

Uses modified IRR (MIRR) to select between two mutually exclusive projects.

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