Calculate the payback period, IRR, MIRR, NPV, and PI for the following two mutually exclusive projects.

The required rate of return is 15% and the target payback is 4 years. 

Explain which project is preferable under each of the four capital budgeting methods mentioned above:

Table 1

Cash flows for two mutually exclusive projects

Year	Investment A	Investment B
0	-$5,000,000	-5,000,000
1	$1,500,000	$1,250,000
2	$1,500,000	$1,250,000
3	$1,500,000	$1,250,000
4	$1,500,000	$1,250,000
5	$1,500,000	$1,250,000
6	$1,500,000	$1,250,000
7	$2,000,000	$1,250,000
8	0	$1,600,000