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Payback, NPV , and MIRR produce the following after - tax cash flows ( in millions of dollars ) : a . What is the
Payback, NPV and MIRR
produce the following aftertax cash flows in millions of dollars:
a What is the regular payback 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. 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 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 which project should the firm undertake?
The firm should undertake
e If the two projects are mutually exclusive and the cost of capital is which project should the firm undertake?
The firm should undertake
f What is the crossover rate? Round your answer to two decimal places.
Project A:
Project B:
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