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D Question 18 3 pts (Long Answer Questione Chapter 26-Original Text) Use the following information to answer questions 18 to 26. You are the CFO

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D Question 18 3 pts (Long Answer Questione Chapter 26-Original Text) Use the following information to answer questions 18 to 26. You are the CFO of XYZ Co. that prints textbook using an outdated system. The owner provides you with the following information about two new super modification projects 'Shakespeare' and 'Voltaire" that are mutually exclusive and that will last for 2 years: Project Shakespeare: Wil require a new machine that costs $500,000. It will increase cash flows by $321.000 in year 1 and $375,000 in year 2. Project Voltaire: Will require a new machine that costs $300,000. It will increase cash flows by $183,000 in year 1 and $264,000 in year 2. The interest (discount rate) is 10 percent For each question credit will only be given if you provide numerical support for your decision What is the preback Period for the two projects? Which project will you choose if the benchmark Payback period is 1 year months? Et View Format Table 120 Paragraph B I V ET D Question 19 3 pts What is the Discounted Payback period for the two projects? Which project will you choose if the benchmark Discounted Payback period is 1 year 7 months? Edit View Format Table 12pt Paragraph BIY ALTY What is the Net Present Value (NPV) of the two projects? Which project will you choose? Edt View Format Table 12pt Paragraph BI U ALTY Compute the internal Rote of Return (IRR) for the two projects? Using IRR, which project will you choose? Edit View Format Table D Question 23 3 p Compute the Modified Intemol Rate of Retum (IRR) MIRR for the two projects? Using MIRR, which project will you choose? Assume that the reinvestment rate (RI) is 11 percent Edit View Format Table Question 24 1 pts Do your answers to (20) and (22) give the same accept decision and explain why? Edit View Question 25 4 pts Calculate the IRR of the incremental investment, Edit View Format Taha Question 26 1 pts Based on your answer to (25), which project will you accept and why

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