Crush Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive and equally risky. Calculate the MIRR for both projects assuming a WACC of 11%. Which project should Crush accept and why?
Year: 0 1 2 3 4
CFS: -$1,750 $660 $475 $455 $430
CFL: -$2,700 $950 $875 $850 $820

Q&A Education