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Your firm is considering two projects that are mutually exclusive. The forecast yearly cash flows are shown below. Project B Project A (1,000,000) (100,000)
Your firm is considering two projects that are mutually exclusive. The forecast yearly cash flows are shown below. Project B Project A (1,000,000) (100,000) 350,000 400,000 700,000 Time 0 1 2 3 4 (1,000,000) 600,000 300,000 200,000 100,000 a) Calculate the payback period (undiscounted) of each project. Include fractional periods (e.g., x.xx years) in your response, if applicable. b) Calculate the IRR of each project. Provide your answer rounded to two decimal places (e.g., X.XX%) c) Calculate the Modified IRR (MIRR) of each project using an 8% discount rate. Provide your answer rounded to two decimal places (e.g., X.XX%) d) Calculate the NPV of each project at discount rates of 0%, 5%, 10 %, and 15%).
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