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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
  1. What is the regular payback period for each of the projects? Round your answers to two decimal places. Project Ayears Project Byears
  2. What is the discounted payback period for each of the projects? Round your answers to two decimal places.

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