Problem: 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?