b. If Ziege only has the ability to invest a total of

$13

million, which projects should it accept?\ PROBLEM 2\ 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 ?\ b. What is the discounted payback period for each of the projects ?\ c. Compute NPV of each Project?

b. If Ziege only has the ability to invest a total of $13 million, which projects should it accept? PROBLEM 2 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 6 ash flows. a. What is the regular payback period for each of the projects ? b. What is the discounted payback period for each of the projects ? c. Compute NPV of each Project