D. If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake?

E. If the two projects are mutually exclusive and the cost of capital is 15%, which project should the firm undertake?

F. What is the crossover rate? Round your answer to two decimal places. %

G. If the cost of capital is 12%, what is the modified IRR (MIRR) of each project? Round your answers to two decimal places. Project A % Project B %

Your division is considering two investment projects, each of which requires an up-front expenditure of $23 million. You estimate that the cost of capital is 12% and that the investments will produce the following after-tax cash flows (in millions of dollars): Year Project A Project B 10 15 20 20 10 8 a. What is the regular payback period for each of the projects? Round your answers to two decimal places. Project A years Project B years b. What is the discounted payback period for each of the projects? Round your answers to two decimal places. Project A years Project B years c. If the two projects are independent and the cost of capital is 12%, which project or projects should the firm undertake? Soloct Session Timenut 59:3