(10–21)

Payback, NPV, and MIRR Your division is considering two investment projects, each of which requires an upfront expenditure of $25 million. You estimate that the cost of capital is 10% and that the investments will produce the following after-tax cash flows (in millions of dollars):

Year Project A Project B 1 5 20 2 10 10 3 15 8 4 20 6

a. What is the regular payback period for each of the projects?