Question: A company is considering two projects and can only accept one of them.The projected cash flows of both the projects are as follows: Year Project

A company is considering two projects and can only accept one of them.The projected

cash flows of both the projects are as follows:

Year Project A Cash Flow Project B Cash Flow

0 -$10,000,000 -$15,000,000

3 $15,000,000 $21,700,000

The company's WACC is 10%.Compute the payback, NPV, IRR and MIRR for each

project. Which project should be chosen?Explain the logic behind your choice.

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