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8% cost of capital -R, NPV, and MIRR Your division is considering two investment projects, each of which requires an up-front experie 22 min. You
8% cost of capital
-R, NPV, and MIRR Your division is considering two investment projects, each of which requires an up-front experie 22 min. You state that the cost of the produce the following after-tax cash flows (in millions of dollars); Year Project A Project B 1 2 5 3 4 10 15 20 20 10 B 6 a. What is the regular payback penod for each of the projects! Round your answers to two decimal places Project A: years Project B: years b. What is the discounted payback period for each of the projects? Do not found intermediate calculation, and your students Project A: years Project B: years c. If the two projects are independent and the cost of capital is 8%, which project or projects show the form undertake The firm should undertake Select d. If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertaker The firm should undertake -Select e. If the two projects are mutually exclusive and the cost of capital is 15%, which project should the fum undertak The firm should undertake Select f. What is the crossover rate? Round your answer to two decimal places % g. If the cost of capital is 8%, what is the modified IRR (MIRR) of each project? Do not round medication for you to 96 Project A: % Project B: BE Step by Step Solution
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