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our division is considering two investment projects, each of which requires an up-front expenditure of $23 mallion. You estimate that the cost of capital is

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our division is considering two investment projects, each of which requires an up-front expenditure of $23 mallion. You estimate that the cost of capital is 10% and that the vestments will produce the following after-tax cash flows (in millions of dollars): a. What is the reaular Dayback period for each of the projects? Round your answers to two decimal places. Project A: years Project B: years b. What is the discounted payback period for each of the projects? Do not round intermediate calculations. Aound 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 d. If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm underteke? The firm should undertake 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 t. What is the crossover rate? flound your answer to two decimal places: % 9. If the cost of capital is 10%, what is the modified tRR (MIRR) of each project? Do not round intermediate calculations, Round your answers to two decimal places. Project A: Project B

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