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A company is considering two projects that have the following cash flow streams: Project A Project B Year 0 -15,000,000 -15,000,000 Year 1 5,500,000 2,500,000

A company is considering two projects that have the following cash flow streams:

Project A Project B
Year 0 -15,000,000 -15,000,000
Year 1 5,500,000 2,500,000
Year 2 5,500,000 4,500,000
Year 3 5,500,000 6,500,000
Year 4 5,500,000 8,500,000
The cost of capital/discount rate is 7.50%
What are the NPV, IRR and MIRR for each of the projects?

What are the payback periods and discounted payback periods for each project?

If the company can only do one of the projects, what are the reasons to prefer one over the other?

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