Problem:
Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below:
Year...........X............Y
0.............(1,000)......(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 12%. You must make a recommendation, you must base it on the modified IRR(MIRR). What is the MIRR of the better project?