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JUST NEED B,F,AND G Payback, NPV, and MIRR Your division is considering two investment projects, each of which requires an up-front expenditure of $28 million.
JUST NEED B,F,AND G
Payback, NPV, and MIRR Your division is considering two investment projects, each of which requires an up-front expenditure of $28 million. You estimate that the cost of capital is 10% and that the investments will produce the following after-tax cash flows (in millions of dollars): Year Project A Project B 5 20 1 2 3 10 10 8 15 4 20 6 a. What the regular payback period for each of the projects? Round your answers to two decimal places. Project A: years Project B: years b. What 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 c. If the two projects are independent and the cost of capital is 10%, which project or projects should the firm undertake? The firm should undertake -Select- v d. 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- e. 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- V. f. What is the crossover rate? Round your answer to two decimal places. % 9. If the cost of capital is 10%, what is the modified IRR (MIRR) of each project? Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project BStep by Step Solution
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