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 12% and that the investments will produce the following after-tax cash flows (in millions of dollars): Year 1,2,3,4, Project A 5,10,15,20 Project B 20,10,8,6

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 12%, which project or projects should the firm undertake?

The firm should undertake - Select (Project A, Project B or Both).

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 or Both).

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 or Both) .

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

If the cost of capital is 12%, 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: %