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You are considering two investment projects, each of which requires an up-front expenditure of 525 million. The investments will produce the following after-tax cash flows

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You are considering two investment projects, each of which requires an up-front expenditure of 525 million. The investments will produce the following after-tax cash flows (in million dollars). \begin{tabular}{|c|c|c|} \hline Year & Project A & Project B \\ \hline 0 & $25,000,000 & $25,000,000 \\ \hline 1 & $5,000,000 & $20,000,000 \\ \hline 2 & $10,000,000 & $10,000,000 \\ \hline 3 & $15,000,000 & $8,000,000 \\ \hline 4 & $20,000,000 & $6,000,000 \\ \hline \end{tabular} 1. What is the oroiect's A pavback period? 2. If the two oroiects are indeoendent and the cost of caoital is 10%. which ofoiect of oroiects should be taken? 3. If the two eroiects are mutually exdusive. which oroiect should be taken? i Hint. construct the NPV orofilel. 4. What is the cross-over rate? 5. If the cost of caoital is 10%. what is the MiRA IModified internal rate of returni of oroiect A

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