Your division is considering two investment projects, each of which requires an up-front expenditure of $26 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):

YEAR	PROJECT A	PROJECT B
1	5	20
2	10	10
3	15	8
4	20	6

a. What is the regular payback period for each of the projects? Round your answers to two decimal places

Project A :

Project B :

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 :

Project B:

c. 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 (PROJECT A / PROJECT B / BOTH PROJECTS) - choose one

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 (PROJECT A / PROJECT B) - choose one

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 (PROJECT A / PROJECT B) - choose one

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 :