Question
Your division is considering two investment projects, each of which requires an upfront expenditure of $25 million. You estimate that the cost of capital is
Your division is considering two investment projects, each of which requires an upfront expenditure of $25 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?
b. What is the discounted payback period for each of the projects?
c. If the two projects are independent and the cost of capital is 10% which project or projects should the firm undertake?
d. if the two projects are mutually exclusive and the cost of capital is 5% which project should the firm undertake?
e. If the two projects are mutually exclusive and the cost of capital is 15% which project should the firm undertake?
F. What is the crossover rate?
G. If the cost of Capital is 10% what is the MIRR of each project?
I do not need any excel sheet , plz be specific as much as you can with details and formulas and I want to know where didi you get all numbers with calculator not excel sheet
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