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Please show all work Your firm is considering two investment projects, each of which requires an up-front expenditure of $20 million. You estimate that the

image text in transcribedPlease show all work

Your firm is considering two investment projects, each of which requires an up-front expenditure of $20 million. You estimate that the cost of capital is 11% and that the following cash flows (in millions of dollars) will be generated by the projects: Year Project A Project B 1 $5 $20 2 10 10 3 15 8 4 20 6 Calculate the NPV, IRR and Payback for project A and B. Then, Using everything you know about capital budgeting, please answer the following questions: 1. If the two projects are independent, which project or projects should the firm undertake? 1, if the two projects are mutually exclusive, which project or projects should the firm undertake? Explain in full. The answer must be complete (mini paragraph). Substantiate with numbers

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