A firm is considering Projects A and Project F. The firms 9% cost of capital is optimal. Calculate the net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), profitability index (PI), and payback period (PB) for each of the projects. If the projects are independent, which project(s) will be accepted? If mutually exclusive, which is chosen. Assuming Project F is contingent on Project A, does the company accept both?

t

0 1 2 3 4 5

Project A

-$750,000 180,000 360,000 180,000 160,000

50,000

Project F

-$300,000 72,000 144,000 74,000 64,000 20,000