Your division is considering two investment projects, each of which requires an up front expenditure of $24 million You estimate that the cost of capital is 8 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 regular payback period for each of the projects Round your answers to two decimal places Project A years Project B years 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 If the two projects are independent and the cost of capital is 8 , which project or projects should the firm undertake The firm should undertake Select Project A Project B both projects If the two projects are mutually exclusive and the cost of capital is 5 , which project should the firm undertake The firm should undertake Select Project A Project B If the two projects are mutually exclusive and the cost of capital is 15 , which project should the firm undertake The firm should undertake Select Project A Project B What is the crossover rate Round your answer to two decimal places If the cost of capital is 8 , 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

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Your division is considering two investment projects, each of which requires an up-front expenditure of $24 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 $24 million. You estimate that the cost of capital is 8% 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 regular payback period for each of the projects? Round your answers to two decimal places.
Project A: years

Project B: years
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
If the two projects are independent and the cost of capital is 8%, which project or projects should the firm undertake?
The firm should undertake -Select-Project A Project B both projects
If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake?
The firm should undertake -Select-Project A Project B
If the two projects are mutually exclusive and the cost of capital is 15%, which project should the firm undertake?
The firm should undertake -Select-Project A Project B
What is the crossover rate? Round your answer to two decimal places.
%
If the cost of capital is 8%, 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: %