Question: ABC company is analyzing two mutually exclusive projects, X and Y, whose cash flows are shown below:
Years 0 r = 12% 1yr 2yr 3yr
X -1,100 1,000 350 50
Y -1,100 0 300 1,500
The company's cost of capital is 12 percent, and it can get an unlimited amount of capital at that cost. What is the regular IRR (not MIRR) of the better project, i.e., the project which the company should choose if it wants to maximize its stock price?