Your division is considering two investment projects, each of which requires an up$-$front expenditure of $$28$ million. You estimate that the cost of capital is

$10\%$ and that the investments will produce the following after$-$tax cash flows $($in millions of dollars$)$:

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 tivo decimal

places.

Project A:

years

Project B:

years

c$.$ Calculate the NPV of the two projects. Do not round intermediate calculations. Round your answers to the nearest cent.

Project A: $

Project B: $

Calculate the IRR of the two projects. Do not round intermediate calculations. Round your answers to two decimal places.

Project A: $,\%$

Project B: $,\%$

If the two projects are independent and the cost of capital is $10\%,$ which project or projects should the firm undertake?

The firm should undertake

d$.$ If the two projects are mutually exclusive and the cost of capital is $5\%,$ which project should the firm undertake?

The firm should undertake

e$.$ If the two projects are mutually exclusive and the cost of capital is $15\%,$ which project should the firm undertake?

The firm should undertake $].$

f$.$ What is the crossover rate? Round your answer to two decimal places.

$\%$

g$.$ If the cost of capital is $10\%,$ what is the modified IRR $($MIRR$)$ of each project? Do not round intermediate calculations. Round your answers to

two decimal places.

Project A:

$\%$

Project B:

$\%$