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Payback, NPV$,$ and MIRR

Your division is considering two investment projects, each of which requires an up$-$front expenditure of $$23$ million. You estimate that the cost of capital is $9\%$ and that the investments will produce the following after$-$tax cash flows $($in millions of dollars$)$:

Year Project A Project B

$1520$

$21010$

$3158$

$4206$

What is the regular payback period for each of the projects? Round your answers to two decimal places.

Project A:

years

Project B:

years

What is the discounted payback period for each of the projects? Do not round intermediate calculations. Round your answers to two decimal places.

Project A:

years

Project B:

years

If the two projects are independent and the cost of capital is $9\%,$ which project or projects should the firm undertake?

The firm should undertake

$-$Select$-$

$.$

If the two projects are mutually exclusive and the cost of capital is $5\%,$ which project should the firm undertake?

The firm should undertake

$-$Select$-$

$.$

If the two projects are mutually exclusive and the cost of capital is $15\%,$ which project should the firm undertake?

The firm should undertake

$-$Select$-$

$.$

What is the crossover rate? Round your answer to two decimal places.

$\%$

If the cost of capital is $9\%,$ what is the modified IRR $($MIRR$)$ of each project? Do not round intermediate calculations. Round your answers to two decimal places.

Project A:

$\%$

Project B:

$\%$