Question: Payback, NPV , and MIRR Your division is considering two investment projects, each of which requires an up - front expenditure of $ 2 5

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 12% and that the investments will produce the following after-tax cash flows (in millions of dollars):
Year Project A Project B
1520
21010
3158
4206
What is the regular payback period for each of the projects? Round your answers to two decimal places.
Project A:
years
Project B:
years
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
What is the crossover rate? Round your answer to two decimal places.
%
If the cost of capital is 12%, what is the modified IRR (MIRR) of each project? Do not round intermediate calculations. Round your answers to two decimal places.
Project A:
%
Project B:
%

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