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QUESTION 1 Use the following information to answer the next six questions You are evaluating independent projects with cash flows shown below. The WACC is

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QUESTION 1 Use the following information to answer the next six questions You are evaluating independent projects with cash flows shown below. The WACC is 12% Year 0 1 Cash Flows: Project A (in millions) -125 40 30 2 3 Cash Flows: Project B (in millions) -140 85 50 -20 -15 90 4 85 -10 70 5 You are concerned about short-term financing, so you decide to evaluate each project in terms of its payback period Your required payback period is 4 years. Which project or projects would you take? B A&B O You'd be indifferent between accepting and rejecting either project O None of the above QUESTION 2 QUESTION 2 5 points si Find the discounted payback period (in years) for project 8. Round intermediate staps and your final answer to four decimals. Do not use words when entering your response QUESTION 3 5 points Suppose you decide to the discounted payback method to evaluate the projects, with a required payback of 4 years. Which projecte projects would you accept? OB A&B You'd be indifferent between accepting and rejecting either project None of the above QUESTION 4 5 points ulube Maps Question Completion Status: Support QUESTION 4 Which project or projects would you take based on NPV? B A&B O You'd be indifferent between accepting and rejecting either project None of the above QUESTION 5 What is the modified internal rate of return for project A? Round intermediate steps to four decimals 0 2059 O 1241 238 1978 O None of the above QUESTION 6 toleo baadon MIRR2 QUESTION 6 Which project or projects would you take based on MIRR? OB A&B You'd be indifferent between accepting and rejecting either project None of the above Click Save and Submit to save and submit. Click Save All Answers to save all answers. L O arch 99+

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