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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

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 11% 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

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

If the cost of capital is 11%, what is the modified IRR (MIRR) of each project? Round your answers to two decimal places.

Project A

Project B

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