Your division is considering two investment projects, each of which requires an up-front expenditure of $25 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 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 A: years

Project B: years

1. 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

1. Calculate the NPV of the two projects. Do not round intermediate calculations. Round your answers to the nearest cent.

Project A: $

Project B: $

1. Calculate the IRR of the two projects. Do not round intermediate calculations. Round your answers to two decimal places.

Project A: %

Project B: %

1. 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:

1. If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake?

The firm should undertake:

1. If the two projects are mutually exclusive and the cost of capital is 15%, which project should the firm undertake?

The firm should undertake:

1. What is the crossover rate? Round your answer to two decimal places.
2. 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: %