Trident is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below:

Years 0 1 2 3 4

S -1,100 900 350 100 10

L -1,100 0 300 550 850

The company's cost of capital is 12 percent, and it can get an unlimited amount of capital at that cost. The cutoff payback period is two years.

Calculate each projects NPV, payback, discounted payback, IRR and profitability index. Which project would you choose based on each method?

Show the NPV profile (table and graph) of the two projects and calculate the crossover rate. Which method gives you the correct answer? Is there a conflict between NPV and IRR methods? Explain.

Calculate each projects MIRR. Which project would you choose? Explain why MIRR is better than IRR.

Use a data table to do a sensitivity analysis to see how the cost of capital affects the IRR and MIRR of the two projects. Explain.