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Your firm, Three-Faced Cosmetics, is considering 2 investment projects. Each of these requires a $30 million up-front expenditure. According to your estimates, the firm's

Your firm, Three-Faced Cosmetics, is considering 2 investment projects. Each of these requires a $30 million up-front expenditure. According to your estimates, the firm's cost of capital is 12%, and the expected cash flows (in $ millions) from these projects are as follows: Project B Year 1 2 3 Project A O $5 20 20 k 25 $25 15 10 5 Calculate the NPV, IRR, and Payback for Projects A and B. Then, using everything you know about capital budgeting, please answer the following questions: O If the two projects are independent, which project or projects should the firm undertake? if the two projects are mutually exclusive, which project or projects should the firm undertake? Explam in full. The answer must be complete (in paragraph form). Substantiate your answers with formulas and numerical solutions as well as with written explanations.

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