Year	Project A	Project B
1	10	30
2	15	30
3	25	10
4	30	10

Your division is considering two investment projects, each of which requires an up

-

fron

expenditure of $50 million. You

estimate the cost of capital to be 8% and that the investment will produce the following after

-

tax cash flows (in millions of

dollars).

a.

Calculate each projects payback, discounted payback, NPV, IRR, MIRR, and PI.

b.

If the projects were independent, which project(s) would you recommend based on these calculations?

c.

If the projects were mutually exclusive, which project would you recommend ba

sed on these calculations?

d.

How would your answers to (a), (b), and (c) change if the wacc were 14%?