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Your division is considering two investment projects, each of which requires an up - front expenditure of $ 2 6 million. You estimate that the
Your division is considering two investment projects, each of which requires an upfront expenditure of $ million. You estimate that the cost of capital is and that the investments will produce the following aftertax cash flows in millions of dollars:
tableYearProject AProject B
a What is the regular payback period for each of the projects? Round your answers to two decimal places.
Project A: years
Project B: years
b What is the discounted payback period for each of the projects? Do not round intermediate calculations. Round your answers to two decimal places.
Project A: years
Project B: years
c If the two projects are independent and the cost of capital is Twhich project or projects should the firm undertake?
The firm should undertake Project B
d If the two projects are mutually exclusive and the cost of capital is which project should the firm undertake?
The firm should undertake
e If the two projects are mutually exclusive and the cost of capital is which project should the firm undertake?
AE are correct. I need help finidng F and G
F what is the crossover rate? Riund two decimals
G if the cost of capital is what is the MIRR of each project.
Project A
Project B
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