Use the following data to answer questions $1-5$:

Wilson & Sons Inc. requires $15\%$ return on its investments. The company is

considering the following two mutually exclusive investment projects:

Year

Project A

Project B

$0$

$($$$50,000)$

$$(75,000)$

$1$

$$18,000$

$$21,000$

$2$

$$22,000$

$$27,000$

$3$

$$20,000$

$$28,000$

$4$

$$14,000$

$$35,000$

Calculate the Payback for each project.

If the company imposes a payback cutoff of three years for its investment projects,

should it accept either of the two projects?

Calculate the Discounted Payback for each project.

Which project is preferred, based on a discounted payback period? Why?

Calculate the Net Present Value $($NPV$)$ for each project?

Which project is preferred, based on NPV$?$

Calculate the Internal Rate of Return $($IRR$)$ for each project.

Which project is preferred, based on IRR?

Calculate the Modified Internal Rate of Return $($MIRR$)$

Which project is preferred, based on MIRR?