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 using an 11.5% hurdle rate. If the projects are independent, which project(s) will be accepted? If mutually exclusive, which is chosen? Assuming Project K is contingent on Project B, does the company accept both?

t

0 1 2 3 4

Project B

-$12,500 2,500 3,750 5,000 10,000

Project K

-$12,500 13,500 3,750 2,500 1,250