Calculate each project MIRR

Reference no: EM132198446

Question - A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below:

Years	0	1	2	3	4
S	-1,100	900	350	100	10
L	-1,100	0	300	550	850

a) Calculate each project's MIRR. Which project would you choose? Explain why MIRR is better than IRR.

b) Use a data table to do a sensitivity analysis to see how cost of capital affects the IRR and MIRR of the two projects. Explain.

Reference no: EM132198446

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