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Your division is considering two investment projects, each of which requires an up - front expenditure of $ 2 0 million. They are mutually exclusive.

Your division is considering two investment projects, each of which requires an up-front expenditure of $20 million. They are
mutually exclusive. You estimate that the investments will produce the following net cash flows:
A. What are the two projects' net present values, assuming the cost of capital is 10%?15%? What are the accept/reject decisions?
Acceptable
@ WACC
10%
15%
B. What are the two projects' IRRs at these same costs of capital? What are the accept/reject decisions?
C. What are the two projects' MIRRs at these same costs of capital? What are the accept/reject decisions?
D. What are the two projects' Profitablity Indexes at these same costs of capital? What are the accept/reject decisions?
E. What are the two projects' Paybacks? What is the preferred option?
Please include excel equations.
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