9. PepsiCo has determined that its weighted average cost of capital is 10% and is considering two new bottling machines, Pepsico considers the selection of the new bottling machine as mutually exclusive since it wants to standardize all of its bottling operations. Pepsico has developed the following cash flows for bottling machine A and bottling machine B.

Machine A Machine B

Year cash flow year cash flow

0 -150 ,000 0 -300,000

1 60,000 1 100,000

2 90,000 2 150,000

3 100,000 3 300,000

what is the NPV of each project?

What is the IRR of each project?

What is the payback period for each project:

Which machine should pepsico choose? WHY?

What is the MIRR of Machine A?