Question: Problem 10-21 Payback, NPV, and MIRR Your division is considering two investment projects, each of which requires an up-front expenditure of$27 million. You estimate that

Problem 10-21 Payback, NPV, and MIRR Your division is considering two investment projects, each of which requires an up-front expenditure of$27 million. You

Problem 10-21 Payback, NPV, and MIRR Your division is considering two investment projects, each of which requires an up-front expenditure of$27 million. You estimate that the cost of capital is 11% and that the investments will produce the following after-tax cash flows (in millions of dollars): (17 points) Project A Project B 20 10 8 6 Year 10 15 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? 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? Select d. If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake? -Select

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