Payback, NPV, and MIRR

Your division is considering two investment projects, each of which requires an up-front expenditure of $24 million. You estimate that the cost of capital is 12% 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 years Project B years

b.What is the discounted payback period for each of the projects? 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 12%, which project or projects should the firm undertake? Project A, Project B, Both projects

d.If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake? -Project A Project B

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

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

g.If the cost of capital is 12%, what is the modified IRR (MIRR) of each project? Round your answers to two decimal places. Project A % Project B %