Mike's division is considering two investment projects, each of which requires an up-front expenditure of $25 million. He estimates 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
1	5		20
2	10		10
3	15		8
4	20		6

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 10%, which project or projects should the firm undertake?

The firm should undertake? -Project A, Project B, or both projects-

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

The firm should undertake _______

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

The firm should undertake _______

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

______%

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 B:____ %