Consider the following cash flows of two mutually exclusive projects for L and S. Assume that the discount rate is 10%.

Year Expected After-Tax Net Cash Flows

Project L Project S

0 $(100) $(100)

1 10 70

2 60 50

3 80 30

Calculate NPV, PI, MIRR, and Pay back period of project L. Based on the NPV, PI, MIRR, Payback Period which project should be taken? Assume that targeted payback period is 2 years. [NPV S = $ 27.50; PI S = 1.27; MIRR S = 19.28%, PBPs = 1.6 Years]