Capital Budgeting Criteria

1) Calculate the projects' NPVs, IRRs, MIRRs, Regular Payback, and Discounted payback. 2) How might conflict exist between the NPV and the IRR when independent projects are evaluated?

	0	1	2	3	4
Stream A	($30)	$5	$10	$15	$20
Stream B	($30)	$20	$10	$8	$6

This is what I have so far, correct?

	NVP	IRR	MIRR	Reg Payback	Discounted Payback
Stream A	$7.04	19.2%	16.5%	2.4 yrs
Stream B	$5.96	22.5%	15.6%	2.727 yrs

Two projects are being considered. WACC is 10 percent, and the projects' after-tax cash flows (in millions) are as follows: