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1. (7) There are two mutually exclusive projects with the following cash flows: Time 0 1 2 3 4 5 ( NPV IRR MIRR Project

1. (7) There are two mutually exclusive projects with the following cash flows:

Time 0 1 2 3 4 5 ( NPV IRR MIRR

Project A -$100m $40m $70m $40m $10m $10m (37.3 27.8 17.2

Project B -$100m $10m $20m $70m $40m $60m (42.8 22.16 18.1

The opportunity cost of capital is 10%. Calculate the NPV, IRR, MIRR and

payback period for both projects. Which project should be selected?

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