Payback, NPV, and MIRR Your division is considering two investment projects, each of which requires an up-front expenditure of $22 million. You estimate that the cost of capital is 8% 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 a. What is the regular payback period for each of the projects? Round your answers to two decimal places. Project A: 2.47 years Project B: 1.20 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: 2.74 years Project B: 1.41 years C. If the two projects are independent and the cost of capital is 8%, which project or projects should the firm undertake? The firm should undertake both projects 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 Project A 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 Project BV f. What is the crossover rate? Round your answer to two decimal places. 13.53 % g. If the cost of capital is 8%, what is the modified IRR (MIRR) of each project? Do not round intermediate calculations. Round your answers to two decimal places. Project A: % x Project B: %