Only answer part B starting from cell B 42 THANKS

3. Your division is considering two investment projects, each of which requires an up-front expenditure of $25 million. You estimate that the cost of capital is 10% and that the investments will produce the following after-tax cash flows (in millions of dollars): Year 0 Project A -25 Project B -25 20 10 2 10 15 1206 10 a. If the two projects are independent and the cost of capital is 10%, which project or projects should the firm undertake? 10% NPVA = $12.74 NPVB = $11.55 12 14 Both are accepted as long as NPV are postive values 16 17 b. If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake? 18 5% NPVA = NPV8 = $18.24 $14.96 20 22 The firm should undertake Project A c. If the two projects are mutually exclusive and the cost of capital is 15%, which project should the firm undertake? 15% NPVA = $8.21 NPVB = $8.64 >> 28 The firm should undertake project B. 30 d. What is the crossover rate? Year Cash Flow Differential 32 36 39 Crossover rate = 13.53% 41 e. If the cost of capital is 10%, what is the modified IRR (MIRR) of each project? 42 43 44 MIRRA = MIRRB = 45 46 f. What is the discounted payback period for each of the projects? 47 48 Year Project A CFs Discounted CFs Cumulative CFs 50 51 | 52 21 -25 5 10 15 20 53 N| 54 55 Year Project B Discounted CFs Cumulative CFs 56 57 58 -25 20 10. 59 2 60 4 61 62 63 Discounted Paybacka = Discounted Paybackg = 64 65