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Your division is considering two investment projects, each of which requires an up-front expenditure of $27 million. You estimate that the cost of capital is

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Your division is considering two investment projects, each of which requires an up-front expenditure of $27 million. You estimate that the cost of capital is 12% and that the investments will produce the following after-tax cash flows (in millions of dollars) Year Project AProjectB 20 10 15 20 10 4 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? 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 12%, which project or projects should the firm undertake? Select- d. If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake? Select- e. If the two projects are mutually exclusive and the cost of capital is 15%, which project should the firm undertake? Select- f. What is the crossover rate? Round your answer to two decimal places. g. If the cost of capital is 12%, what is the modified IRR (MIRR) of each project? Round your answers to two decimal places. Project A 96 Project B

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