Options for C:

Project A, Project B, or Both Projects.

Options for D & E:

Project A, or Project B

Payback, NPV, and MIRR 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 1155 and that the investments will produce the following after-tax cash flows (in Millions of dollars), Year Project A Project B 1 5 20 2 10 10 3 15 8 20 4 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? Do not round intermediate calculations. 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 11%, which project or projects should the firm undertake? The firm should undertake Select d. If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake? The firm should undertake Select V. e. If the two projects are mutually exclusive and the cost of capital is 15%, which project should the firm undertake? The firm should undertake Select f. What is the crossover rate? Round your answer to two decimal places 9. If the cost of capital is 119, what is the modified IRR (MIRR) of each project? Do not round intermediate calculations. Round your answers to two decimal places. Project A: 90 Project B