Problem #1 (17 marks) Hartland Industries is evaluating 2 investment projects. Both projects will require an upfront expenditure of $25 million. The investments will produce the following after-tax cash flows (in millions of dollars). a) What is the regular payback period for Project A if the cost of capital is 10%? If the required payback is 3 years which project(s) would you accept assuming they are mutually exclusive? Payback for ProjectB =1.7778 years. (4 marks) b) What is the discounted payback period for Project A if the cost of capital is 10%? If the required payback is 3 years which project(s) would you accept assuming they are independent? Payback for Discounted Project B=2.1994 years. (4 marks) c) If the projects are mutually exclusive and the cost of capital is 7%, using a NPV analysis, which project(s) should the firm undertake? NPVB= 12.3169 (3 marks) d) If the projects are mutually exclusive and the cost of capital is 17%, using a NPV analysis, which project(s) should the firm undertake? NPVB= 6.2234 (3 marks) e) Based on the profitability index (PI), what is your recommendation concerning these projects if these projects are independent and the cost of capital is 7%? PIB= 1.4927 (3 marks)