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Payback, NPV , and MIRR Your division is considering two investment projects, each of which requires an up - front expenditure of $ 2 6
Payback, NPV and MIRR
Your division is considering two investment projects, each of which requires an upfront expenditure of $ million. You estimate that the cost of capital is and that the investments will produce the following aftertax cash flows in millions of dollars:
Year Project A Project B
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 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 which project should the firm undertake?
The firm should undertake
Select
If the two projects are mutually exclusive and the cost of capital is 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 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:
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