A company is analyzing two mutually exclusive projects, S and L whose cash flows are shown below.

The company has a weighted average cost of capital of 12%:

Year Project S Cash Flow Project L Cash Flow

0 -$1,100 - $1,100

1 900 0

2 350 300

3 50 500

4 10 850

1. Calculate NPV for each project. Based on the NPV rule, which project should the company accept?
2. Calculate IRR for each project. Based on the IRR rule, which project should the company accept?
3. Calculate MIRR for each project. Based on the MIRR rule (same as the IRR rule), which project should the company accept?
4. Calculate the payback for each project. If the required payback is 2 years, which project should the company accept?

Make sure you show how you get the answers, especially for MIRR and payback, show your work step by step. (Not in excel).