Reference no: EM133033925

Question - Grady Enterprises is looking at two project opportunities for a parcel of land the company currently owns. The first project is a? restaurant, and the second project is a sports facility. The projected cash flow of the restaurant is an initial cost of ?$1,440,000 with cash flows over the next six years of ?$170,000 ?(year one), ?$260,000 ?(year two), $260,000 ?(years three through? five), and ?$1,720,000 ?(year six), at which point Grady plans to sell the restaurant. The sports facility has the following cash? flows: an initial cost of ?$2,340,000 with cash flows over the next four years of ?$370,000 ?(years one through? three) and ?$3,040,000 ?(year four), at which point Grady plans to sell the facility. The appropriate discount rate for the restaurant is 10.0?% and the appropriate discount rate for the sports facility is 12.0?%. What are the MIRRs for the Grady Enterprises? projects? What are the MIRRs when you adjust for the unequal? lives? Do the MIRR adjusted for unequal lives change the decision based on the? MIRRs?