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You are considering the following two projects and can take only one Your cost of capital is 11.5%. The cash flows for the two projects

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You are considering the following two projects and can take only one Your cost of capital is 11.5%. The cash flows for the two projects are as follows (5 million) Year 0 -$98 Year 2 Project Cash flow A (5 million) Change (versus prior year) Cash flow B ($ million) Change (versus prior year) $30 0% - $98 $52 $42 - 19.23% a. What is the IRR of each project? b. What is the NPV of each project at your cost of capital? c. At what cost of capital are you indifferent between the two projects d. What should you do? e. If the two projects have a cleanup and shutdown cost of $0.98 million at the end of year 5 What is the MIRR of each project. a. What is the IRR of each project? The IRR for project Ais % (Round to one decimal place) The IRR for project Bis % (Round to one decimal place.) b. What is the NPV of each project at your cost of capital? The NPV for project A is _million (Round to two decimal places) The NPV for project B is million (Round to two decimal places) c. At what cost of capital are you indifferent between the two projects? You will be indifferent if the cost of capital is %. (Round to one decimal place) Click to select your answer(s). Type here to search The cash flows for the two projects are as follows (5 million) Year 3 Year 2 $30 0% $42 - 19.23% Year 4 $48 11.63% 43.33% $28 -33.33% - 21.4370 is the MIRR of each project. ^ of ENG

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