There are two mutually exclusive projects with the following cash flows:

Time 0 1 2 3 4 5

Project A -$100m $40m $70m $40m $10m $10m

Project B -$100m $10m $20m $70m $40m $60m

The opportunity cost of capital is 10%. Calculate the NPV (5 points), IRR (3 points), MIRR (5 points) and payback period (2 points) for both projects. Which project should be selected?

(NPV IRR MIRR, Payback period)

Project A (37.3, 27.8, 17.2, 1.86 years

Project B (42.8, 22.16, 18.12, 3 years

Show how to find all steps and which project to choose