10-21) Payback, NPV, and MIRR Your division is considering two investment projects, each of which requires an up-front 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): a. What is the regular payback period for each of the projects? Answer 4 A=2.67 years; B=1.5 years. b. What is the discounted payback period for each of the projects? Answer A=3.07 years; B=1.825 years. c. If the two projects are independent and the cost of capital is 10%. which project or projects should the firm undertake? Answer 4 NPVA=$12,739,908 IRR A=27.27%; NPVB=$11,554,880; IRR B=36.15%; Choose both. d. If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake? Inswer+NPVA=$18,243,813NPVB=$14,964,829; ChooseA. e. If the two projects are mutually exclusive and the cost of capital is 15%, which project should the firm undertake? nswer 4 NPVA=$8,207,071i NPVB=$8,643,390 Choose B. f. What is the crossover rate? g. If the cost of capital is 10%, what is the modified IRR (MIRR) of each project